Texas Devices is extensively considered a bellwether for the know-how trade and the economic system.
So traders had been probably disenchanted after TI’s administration did not name a backside for the present semiconductor downturn.
After the market closed Tuesday, the corporate offered a income forecast for the March quarter that was under expectations, citing softening demand for its chips and better cancellations for orders.
Its shares fluctuated in after-hours buying and selling.
For the December quarter, the semiconductor firm reported earnings per share of $2.13, together with an 11-cent profit not in prior steering, in contrast with Wall Road’s consensus estimate of $1.98, based on FactSet. Income got here in at $4.67 billion, which was barely above analysts’ expectations of $4.61 billion.
The corporate didn’t specify the objects within the 11-cent profit on a convention name held to debate the outcomes with analysts and traders.
) mentioned income for the present quarter can be between $4.17 billion and $4.53 billion, a spread whose midpoint is under Wall Road’s consensus name of $4.41 billion.
“As we anticipated, our outcomes replicate weaker demand in all finish markets apart from automotive,” CEO Wealthy Templeton mentioned in a information launch.
Texas Devices shares fell as a lot as 2% initially following the discharge, however later rose to roughly break even.
On the decision, administration mentioned it noticed greater order cancellations in the course of the December quarter. In addition they count on TI’s clients to proceed to scale back stock ranges within the present quarter.
The chip maker sells fundamental building-block chips that go into merchandise in practically each sector of the economic system, from autos and industrials to client electronics. Due to the broad-based nature of the corporate’s extra than100,000 clients, traders think about what occurs to Texas Devices to be a strong indicator of what’s occurring elsewhere/
Over the previous 12 months, Texas Devices has carried out higher than different chip makers. Its shares are roughly flat for the previous 12 months, in contrast with the 16% drop for the
exchange-traded fund (SOXX), which tracks the efficiency of the ICE Semiconductor Index.
Write to Tae Kim at [email protected]
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