TI forecasts fourth-quarter below estimates on weak chip demand in industrial markets
Adds analyst comment in paragraph 7, third-quarter profit in paragraph 9, details throughout
Oct 22 (Reuters) -Texas Instruments TXN.O forecast fourth-quarter revenue and profit below estimates on Tuesday as the chipmaker navigates a buildup of inventory in some segments such as industrial, even as it indicated improving demand from China's automotive market.
The company forecast revenue in the range of $3.70 billion to $4.0 billion, compared with analysts' average estimate of $4.07 billion, according to data compiled by LSEG.
TI's "results and outlook are consistent with the current market trends of mixed PC and smartphone end-markets and soft industrial and automotive demand," said Summit Insights analyst Kinngai Chan.
The analog chipmaker also forecast fourth-quarter earnings between $1.07 and $1.29 per share, compared with analysts' estimate of $1.36.
An ongoing weakness in the industrial market, which utilizes chips for tasks such as automating factories, has hurt Texas Instruments and peers as customers struggle to clear existing inventory stemming from stock-piling during the pandemic.
The results are closely watched as an indicator of demand across a slew of sectors since the company's chips find widespread application. It is also the first among major U.S. chipmakers to report results for the September quarter.
Meanwhile, revenue from the automotive market rose "upper single digits" sequentially, CEO Haviv Ilan said on a post-earnings call with analysts, attributing the uptick to growth in the China market.
"There is momentum for EVs in China, our content is growing there, and that's what really drove the growth in the third quarter," Ilan said. Weakness is expected to persist in the remainder of the automotive market, he said.
Shares of the company rose 1.2% in extended trading, following a rise of about 14% so far this year.
Third-quarter revenue dropped 8% to $4.15 billion, but was the smallest decline in seven quarters.
The company beat profit expectations for the three months ended September, recording earnings of $1.47 per share, above estimates of $1.37 according to estimates compiled by LSEG.
Texas Instruments has been working to produce more chips on its cost-effective 300mm manufacturing technology, which the chipmaker had indicated would help bolster profits.
Reporting by Arsheeya Bajwa in Bengaluru; Editing by Sriraj Kalluvila
Aset Terkait
Berita Terbaru
Pengungkapan: Entitas XM Group menyediakan layanan khusus eksekusi dan akses ke Fasilitas Trading Online kami, yang memungkinkan Anda untuk melihat dan/atau menggunakan konten yang tersedia pada atau melalui situs, yang tidak untuk mengubah atau memperluas, serta tidak mengubah atau memperluas hal tersebut. Akses dan penggunaan ini selalu sesuai dengan: (i) Syarat dan Ketentuan; (ii) Peringatan Risiko; dan (iii) Pengungkapan Penuh. Oleh karena itu, konten disediakan hanya sebagai informasi umum. Anda juga harus ketahui bahwa konten Fasilitas Trading Online kami bukan sebagai ajakan atau tawaran untuk untuk melakukan transaksi apa pun di pasar finansial. Trading di pasar finansial mana pun melibatkan tingkat risiko yang signifikan pada modal Anda.
Semua materi yang diterbitkan di Fasilitas Trading Online kami hanya untuk tujuan edukasi/informasi dan tidak boleh mengandung nasihat dan rekomendasi finansial, pajak investasi atau trading, catatan harga trading kami, penawaran, permintaan, transaksi dalam instrumen finansial apa pun atau promo finansial untuk Anda yang tidak diminta.
Konten pihak ketiga apa pun, serta konten yang disiapkan oleh XM, seperti opini, berita, riset, analisis, harga, informasi lain atau link ke situs pihak ketiga yang tersedia "sebagaimana adanya", sebagai komentar pasar umum dan bukan menjadi nasihat investasi. Sejauh konten apa pun ditafsirkan sebagai penelitian investasi, Anda harus memperhatikan dan menerima bahwa konten tersebut tidak dimaksudkan dan belum disiapkan sesuai dengan persyaratan hukum yang dirancang untuk mempromosikan kemandirian riset investasi dan dengan demikian akan dianggap sebagai komunikasi pemasaran di bawah hukum dan peraturan yang relevan. Mohon dipastikan bahwa Anda telah membaca dan memahami Notifikasi pada Riset Investasi Non-Independen dan Peringatan Risiko kami mengenai informasi di atas, yang dapat diakses disini.
