Texas Instruments Tops First-Quarter Targets But Guides Lower

Chipmaker Texas Instruments beat earnings estimates for the first quarter but offered guidance below expectations for the current period.

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Jun 9, 2023 • 1 min read

Texas Instruments shares (TXN), which had risen Wednesday, fell after the chipmaker exceeded expectations for the first-quarter but provided guidance that was below the views for the current quarter. TXN shares fell nearly 3% in response to the news.

Dallas-based company announced late Tuesday that it had earned $1.85 per share from sales of $4.38billion in the quarter ending March. FactSet polled analysts who expected earnings of 1.77 per share on sales $4.37 billion. Texas Instruments' earnings dropped 21% year-over-year, while its sales fell 11%.

In a press release, Chief Executive Haviv ilan stated that "we experienced weakness in all of our markets except automotive as expected".

Texas Instruments has forecast earnings of $1.75 per share for the current quarter on sales of $4.35 Billion. This is based on its midpoint. Analysts had forecast earnings of $1.82 per share on sales $4.44 billion for the second quarter. Texas Instruments had a $2.45 per share profit on sales of $5.21 Billion in the same quarter last.

TXN shares dropped 2.9% today to close at 164.46. TXN's stock fell 3.7% during Tuesday's regular session to 169.39. The market was down overall.

According to IBD Stock Checkup, the company's shares are ranked seventh out of 30 stocks within IBD's semiconductor manufacture industry group.

Texas Instruments' IBD Composite rating is 84 out 99. The Composite Rating compares a stock's growth metrics to all other stocks regardless of industry.

TXN is also on the IBD list of Tech Leaders.

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