Texas Instruments fails to beat earnings estimates, shares fall

January 23, 2018 | By | Reply More

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FILE PHOTO: An employee enters the research building of Texas Instruments France firm in Villeneuve-Loubet near Nice December 18, 2012. REUTERS/Eric Gaillard/File Photo

DALLAS: Chipmaker Texas Instruments Inc’s fourth-quarter earnings failed to exceed Wall Street expectations after several quarters of better-than-expected results, sending its shares down 5 percent on Tuesday.

The Dallas-based company reported a 67% slump in profit to US$344 million in the quarter ended Dec. 31, mainly due to tax-related expenses from new US tax laws.

Excluding the tax expense, Texas Instruments earned US$1.09 per share, matching analysts’ average estimate, according to Thomson Reuters I/B/E/S.

Net revenue rose 9.8% to US$3.75 billion and edged past analysts’ estimate of US$3.74 billion.

“It’s not a blow-out result, but it is perfectly fine,” said Stacy Rasgon, an analyst at Bernstein.

Revenue from the company’s analog chips division, its largest, rose 11%, while its embedded processing unit posted revenue growth of 20%.

Texas Instruments’ analog chips are used by industries to calculate changes in sound and temperature. The company also makes chips for the automotive sector.

Texas Instruments forecast current-quarter earnings of US$1.01 to US$1.17 per share and revenue of US$3.49 billion to US$3.79 billion.

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