TI sales in 3Q beat estimates but 4Q outlook weak
DALLAS (AP) — Chipmaker Texas Instruments Inc. said Monday that its third-quarter earnings rose 30 percent as it benefited from tax changes and a change in a Japanese pension program. Revenue fell slightly.
Net income in the three months to Sept. 30 rose to $784 million, or 67 cents per share, compared to $601 million, or 51 cents per share, a year ago.
The company's earnings benefited from tax and pension changes worth about 22 cents per share, but it booked 7 cents per share of charges for its acquisition of National Semiconductor and restructuring.
Revenue fell 2 percent to $3.39 billion from $3.47 billion a year ago. Analysts were expecting $3.34 billion in revenue.
CEO Rich Templeton said in a statement that the company executed well in the quarter "even though the economy and semiconductor market remained weak and likely will get weaker in the fourth quarter."
Texas Instruments said it expects fourth-quarter earnings of 23 cents to 31 cents per share. That's below the 36 cents per share expected by analysts. The company said it sees revenue in the final three months of the year at $2.83 billion to $3.07 billion, also below the average of $3.23 billion that analysts were looking for.
Shares fell a penny in after-hours trading to $27.78 following the release of results. Shares closed down 2 cents at $27.79 in the regular session.