Texas Instruments Posts Downbeat Q1 Earnings, Issues Weak Q2 Outlook

Shares of

tumbled more than 7 percent in after-hours trading after the company reported downbeat Q1 earnings and issued a weak forecast for the current quarter. For the second quarter, Texas Instruments projects earnings of $0.60 to $0.70 per share on revenue of $3.12 billion to $3.38 billion. Analysts had expected earnings of $0.73 per share on revenue of $3.43 billion. The Dallas, Texas-based company reported a quarterly profit of $656 million, or $0.61 per share, versus a year-ago profit of $487 million, or $0.44 per share. Its revenue gained 6 percent to $3.15 billion. However, analysts were expecting earnings of $0.62 per share on revenue of $3.2 billion. The company's sales in the analog segment climbed 11 percent to $2.04 billion, while embedded processing revenue rose 2 percent to $672 million. The average estimate among 33 Estimize users was for earnings of $0.64 per share and revenue of $3.21 billion. Rich Templeton, TI's chairman, president and CEO said, "TI's outlook for the second quarter is for revenue in the range of $3.12 billion to $3.38 billion and earnings per share between 60 and 70 cents. Our estimates assume continuing weakness in our communications equipment and personal electronics markets, particularly for wireless infrastructure equipment and PCs, respectively. We also do not expect a near-term rebound in foreign currency exchange rates." Texas Instruments shares dipped 7.15 percent to $54.53 in the after-hours trading session.