Chipmaker Texas Instruments (TXN) late Tuesday handily beat Wall Street’s targets for the third quarter and guided higher for the fourth quarter. The Texas Instruments earnings news sent TXN stock higher in extended trading.


The Dallas-based company earned $1.45 a share on sales of $3.82 billion in the September quarter. Analysts expected Texas Instruments earnings of $1.27 a share on sales of $3.43 billion. On a year-over-year basis, TI earnings dipped 3% while sales rose 1%.

Texas Instruments earnings have fallen for sixth consecutive quarters on a year-over-year basis. However, TI sales returned to growth after seven straight down quarters as it emerges from the chip cycle downturn.

In after-hours trading on the stock market today, TXN stock rose 1.1%, near 152.50. During the regular session, ahead of the Texas Instruments earnings report, TXN stock gained a fraction to 150.83.

TI Sales Helped By Automotive Demand Rebound

“Revenue increased 18% sequentially with notable strength from the rebound of automotive demand and growing demand from personal electronics,” Chief Executive Rich Templeton said in the Texas Instruments earnings news release.

He added, “In our core businesses, Analog revenue grew 18% and Embedded Processing grew 19% sequentially. From a year ago, Analog revenue grew 7% and Embedded Processing declined 10%.”

TI designs and manufactures analog and embedded processing chips for markets such as industrial, automotive, personal electronics, communications equipment and enterprise systems.

Texas Instruments Earnings Outlook Tops Views

For the fourth quarter, Templeton guided to Texas Instruments earnings of $1.30 a share on sales of $3.55 billion. That’s based on the midpoint of his outlook.

Analysts had predicted earnings of $1.19 a share on sales of $3.33 billion. In the year-earlier period, TI earned $1.12 a share on sales of $3.35 billion.

Follow Patrick Seitz on Twitter at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.


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