Texas Instruments Inc. shares declined in the extended session Tuesday after the chip maker’s cautious outlook overshadowed its earnings beat.
Texas Instruments (TXN) shares declined 2% after hours, following a 3.7% decline to close the regular session at $169.39.
In its earnings release, the company said it expects second-quarter earnings of $1.62 to $1.88 a share on revenue of $4.17 billion to $4.53 billion, while analysts surveyed by FactSet, on average, had forecast earnings of $1.82 a share on revenue of $4.44 billion.
For the first quarter, Texas Instruments posted net income of $1.71 billion, or $1.85 a share, compared with $2.2 billion, or $2.35 a share, in the year-ago period.
Revenue fell to $4.38 billion from $4.91 billion in the year-ago quarter given “weakness across our end markets with the exception of automotive, as expected.”
“During the quarter we experienced weakness across our end markets with the exception of automotive, as expected,” said Haviv Ilan, Texas Instruments’ chief executive, in a statement.
Analysts had forecast earnings of $1.77 a share on revenue of $4.37 billion, based on the company’s outlook of $1.64 to $1.90 a share on revenue of $4.17 billion to $4.53 billion.
Sales of analog electronics, which convert real-world data such as sound or temperature into digital data, fell 14% to $3.29 billion from $3.82 billion in the year-ago period, while analysts had forecast $3.28 billion. Sales of embedded processors, which take that digital data and use it to perform specific tasks, rose 6% to $832 from $782 million, with analysts expecting $804.8 million.
Over the past 12 months, Texas Instruments’ stock price has declined 2.6%. In comparison, the S&P 500 index has fallen 5.2%, the tech-heavy Nasdaq Composite Index has dropped 9.3%, while the PHLX Semiconductor Index has declined 4.4% over that time.