Texas Instruments Incorporated (NASDAQ:TXN) stock was up on Tuesday following a positive earnings report for the second quarter of 2016 and a high forecast for the following quarter.
Texas Instruments reported earnings per share of 76 cents for the second quarter of the year. This is up 17% from the 65 cents per share that the company reported during the same time last year. It also came in 3 cents above what Wall Street was expecting for the quarter.
Texas Instruments’ reported revenue for the second quarter of 2016 was $3.27 billion. This represents a 1% increase over the $3.23 billion that the company reported in the second quarter of 2015. It was also higher than the $3.20 billion that analysts were expecting from the company in Q2 2016.
“Revenue and earnings per share for the quarter were solidly in the upper half of our expected range,” Rich Templeton, CEO of Texas Instruments, said in a statement. “Compared with a year ago, demand for our products continued to be strong in the automotive market, and grew in the industrial and communications equipment markets.”
Texas Instruments outlook for the third quarter of 2016 includes earnings per share between 81 cents and 91 cents. It also has revenue falling between $3.34 billion to $3.62 billion. Wall Street is expecting EPS of 81 cents and revenue of $3.38 billion for that quarter.
Texas Instruments also saw an upgrade from analysts at Bank of America Merrill Lynch. This included changing its rating from “Neutral” to “Buy” and increasing its target price for the stock from $64 to $80, reports TheStreet.com.
TXN shares were up 6% as of Noon Tuesday.
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