Texas Instruments Shares Fall 0.9% After Q4 Outlook Points to Flat Revenue

Texas Instruments shares slipped after hours Wednesday as the chipmaker’s fourth-quarter revenue midpoint landed $5 million below its third-quarter total, placing the sales outlook near flat after a quarter of strong growth.

Shares were $282.17 at 5:06 p.m. ET (21:06 UTC) Wednesday, Oct. 21, down 0.9% from the regular-session close of $284.65. They had gained 2.47% during regular trading and remained 1.6% above Tuesday’s close at the after-hours price. Texas Instruments released its results at 4:01 p.m. ET (20:01 UTC).

Texas Instruments expects fourth-quarter revenue of $5.8 billion to $6.3 billion, with per-share earnings of $2.45 to $2.79. The $6.05 billion revenue midpoint is $5 million below third-quarter revenue of $6.055 billion. The $2.62 earnings-per-share midpoint matches the third quarter, and the revenue midpoint is above the $5.73 billion average analyst estimate.

For the quarter ended Sept. 30, Texas Instruments recorded $6.055 billion in revenue, up 28% from a year earlier. Net income increased 78% to $2.425 billion, and diluted earnings per share rose 77% to $2.62. Both revenue and earnings exceeded analyst estimates. The third-quarter results included growth across several markets.

Analog chips and embedded processors are the company’s two principal businesses. Industrial revenue rose more than 40% year over year, while automotive revenue grew by a midteens percentage. CEO Haviv Ilan said, “Data center was up about 95% year on year and grew about 20% sequentially.”