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Chipmaker Texas instruments (TXN) beat Wall Street’s second-quarter targets on Wednesday night. But his sales forecast for the current period was lower than seen. TXN stock fell as part of the extended trade.
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The Dallas-based company earned $ 2.05 per share on sales of $ 4.58 billion in the June quarter. Analysts were expecting TI to earn $ 1.83 per share on sales of $ 4.36 billion, according to FactSet. Year over year, Texas Instruments’ profits increased 39% while sales increased 41%.
TI’s earnings per share included a benefit of 6 cents for items that were not in the company’s original forecast. Its adjusted earnings of $ 1.99 per share still exceed Wall Street’s consensus estimate.
The company saw strong demand last quarter for chips in automotive, industrial and personal electronics applications, chief executive Rich Templeton said in a press release.
TXN stock drops due to weak selling outlook
For the current quarter, Texas Instruments expects to earn $ 2 per share on sales of $ 4.58 billion. It’s based on the midpoint of its orientation. Analysts were looking for earnings of $ 1.97 per share on sales of $ 4.6 billion, FactSet said.
In after-hours trading in the stock market today, TXN stock fell 3.8% to nearly 186.90. During Wednesday’s regular session, TXN stock rose 3.5% to 194.24.
On June 28, TXN stock hit a buy point of 192.13 from a cup base with handle, according to IBD MarketSmith charts. But trade volume was well below average, a sign that the breakout attempt lacked conviction. TXN stock closed below the buy point that day. Since then, he has struggled to reclaim that point of purchase.
Follow Patrick Seitz on Twitter on @IBD_PSeitz for more articles on consumer technology, software, and semiconductor stocks.
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