Texas Instruments, a semiconductor company, has announced a revenue forecast for the December quarter that is below expectations. This update caused a decline in the company’s shares after the report was released on Tuesday.
During the September quarter, Texas Instruments reported earnings per share of $1.85, surpassing Wall Street’s consensus estimate of $1.82, as stated by FactSet. However, the company’s revenue fell short of analysts’ expectations, coming in at $4.53 billion instead of the anticipated $4.6 billion.
Furthermore, the guidance provided by Texas Instruments for the current quarter is also weak. The company expects a revenue range of $3.93 billion to $4.27 billion, falling short of the consensus estimate of $4.5 billion.
CEO Haviv Ilan acknowledged that while automotive growth persisted during the quarter, there was a broadening weakness in the industrial sector.
Following this announcement, Texas Instruments shares experienced a 4.5% decline in after-hours trading on Tuesday, dropping to $104.26 per share.
The chip maker is known for selling basic building-block chips utilized in a wide range of sectors including automotive, industrial, and consumer electronics.
This year, Texas Instruments stock has faced an 11% decrease, in contrast to the substantial 32% rise of the iShares Semiconductor ETF (SOXX), which tracks the performance of the ICE Semiconductor Index.
