reported double-digit sales growth and fatter earnings on Wednesday, but that wasn’t enough for yield-hungry investors who instead focused on the company’s forecast.
Texas Instruments stocks fell 4.4% in the extended session after closing regular trading at $ 194.24 on a gain of 3.5%. The shares have gained 18% this year; the PHLX Semiconductor Index has also risen by 18%.
Texas Instruments, which makes chips for automobiles, industrial applications, and personal electronics, reported in the second quarter Net income of $ 1.9 billion, or $ 2.05 per share, compared to net income of $ 1.4 billion, or $ 1.48 per share. Revenue grew 41% to $ 4.6 billion. Analysts had expected earnings of $ 1.84 per share on sales of $ 4.36 billion.
Demand for many of the company’s chips increased during the quarter, slowing shipments to customers. Inventory remains low and the company is gradually expanding production capacity, executives said in a conference call. A new factory is to be opened next year.
told reporters and analysts that the company did not know how long the global chip shortage would last.
“We have read the sections that it will end soon and others that say it will continue for some time,” Lizardi said. “We’re not going to predict or even comment on how long the cycle will last the fourth quarter because we honestly don’t know.”
For the third quarter, the company expects sales between $ 4.4 billion and $ 4.8 billion; the consensus estimate is $ 4.4 billion.
The company’s projections suggest executives are expecting a strong quarter, Lizardi said.
Since chip demand has risen way beyond supply, investors have expected it Semiconductor company too Far exceed profit expectations and offer bullish orientation. Those who do not face the wrath of investors.
Write to Max A. Cherney at [email protected]