Texas Instruments Beats Wall Street Expectations, but Sales and Earnings Decline Continue
Texas Instruments, a chipmaker based in Dallas, has outperformed Wall Street’s expectations for the first quarter. The company’s sales guidance for the second quarter was also above expectations, while its earnings guidance was in line. This positive news caused TXN stock to rise in after-hours trading.
In the March quarter, Texas Instruments earned $1.20 a share on sales of $3.66 billion, beating analyst expectations of $1.07 a share on sales of $3.61 billion. However, the company experienced a 35% decline in earnings and a 16% decline in sales compared to the previous year. This marks the sixth consecutive quarter of declining sales and earnings for Texas Instruments, with analysts forecasting these declines to continue for at least the next two quarters.
For the current quarter, Texas Instruments projected earnings of $1.15 a share on sales of $3.8 billion, based on the midpoint of its guidance. Analysts had anticipated earnings of $1.15 a share on sales of $3.74 billion. In the same period a year ago, the company earned $1.87 a share on sales of $4.53 billion