Texas Instruments, a Dallas-based chipmaker, exceeded analyst expectations for the first quarter and provided sales guidance above expectations. However, earnings guidance was only in line for the second quarter. 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, outperforming 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