MW Texas Instruments gets chip earnings season officially underway with profit beat
4:43 PM ET 7/23/24 | MarketWatch
By Emily Bary
Stock rises 4% in the extended session after report
Texas Instruments Inc., seen as a bellwether for the semiconductor sector in part due to its early earnings-report date, on Tuesday posted a profit beat for the latest quarter.
Shares were up 4% in after-hours trading.
The company generated second-quarter net income of $1.13 billion, or $1.12 a share, compared with $1.72 billion, or $1.87 a share, in the same period a year before. Analysts were modeling $1.16 a share.
Revenue at Texas Instruments (TXN) declined 16% to $3.82 billion from $4.53 billion a year before. The company matched the FactSet consensus on the top line. Revenue was up 4% on a sequential basis.
"Industrial and automotive continued to decline sequentially, while all other end markets grew," Chief Executive Haviv Ilan said in a release.
Read: Is Broadcom's stock benefiting from Nvidia 'fatigue'?
For the third quarter, Texas Instruments expects $3.94 billion to $4.26 billion in revenue along with $1.24 to $1.48 in earnings per share. Analysts were expecting $4.12 billion and $1.37, respectively.
The company noted that it spent $3.7 billion on research and development and selling, general and administrative expenses over the past 12 months. It also spent $5.0 billion on capital expenses.
While some smaller semiconductor companies, and overseas ones, have already posted June-quarter reports, Texas Instruments is generally seen as the first big one for the U.S. chip sector.
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-Emily Bary
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July 23, 2024 16:43 ET (20:43 GMT)
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