Chipmaker Texas Instruments (TXN) late Wednesday beat Wall Street’s targets for the second quarter. But its sales guidance for the current period was below views. TXN stock fell in extended trading.
The Dallas-based company earned $2.05 a share on sales of $4.58 billion in the June quarter. Analysts expected TI earnings of $1.83 a share on sales of $4.36 billion, according to FactSet. On a year-over-year basis, Texas Instruments’ earnings rose 39% while sales climbed 41%.
TI’s earnings per share included a 6-cent benefit for items that were not in the company’s original guidance. Its adjusted earnings of $1.99 a share still topped 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 news release.
TXN Stock Falls On Weak Sales Outlook
For the current quarter, Texas Instruments expects to earn $2 a share on sales of $4.58 billion. That’s based on the midpoint of its guidance. Analysts were looking for earnings of $1.97 a share on sales of $4.6 billion, FactSet said.
In after-hours trading on the stock market today, TXN stock dropped 3.8%, near 186.90. During the regular session Wednesday, TXN stock rose 3.5% to 194.24.
On June 28, TXN stock hit a buy point of 192.13 from a cup-with-handle base, according to IBD MarketSmith charts. But trading volume was well below average, a sign that the attempted breakout lacked conviction. TXN stock ended that day below the buy point. Since then, it has struggled to reclaim that buy point.
Follow Patrick Seitz on Twitter at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
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