Texas Instruments Inc., the largest maker of analog chips that are basic components of almost every electronic device, gave a sales forecast that fell short of some estimates amid weaker demand from phone-equipment manufacturers.First-quarter profit will be $1.01 a share to $1.17 a share, the Dallas-based company said Tuesday in a statement. Revenue will be $3.49 billion to $3.79 billion. On average, analysts predicted a profit of $1.15 a share on sales of $3.64 billion, according to data compiled by Bloomberg. The shares declined as much as 7.2 percent after the earnings announcement."Expectations were running high," said Dave Heger, an analyst at Edward Jones & Co. "You needed a solid beat and raise. Instead, you got in line."Texas Instruments' reach makes it a proxy for demand across the economy. It produces at least some kind of chip for almost everything that runs on electricity and has the largest customer list and product range in the semiconductor industry. Analysts had predicted that strong economic activity would boost demand for the company's products. But Texas Instruments won't meet those projections if it hits the lower end of its revenue forecast.Makers of communications equipment and some personal electronics producers are ordering at lower levels, Texas Instruments said. Demand in the broader categories of industrial and automotive remains solid and that is where the company will continue to invest for future growth, Chief Financial Officer Rafael Lizardi said."Communications equipment was down and personal electronics grew, but in single digits," he said in an interview. "We're focused on industrial and automotive. Those markets did well for us."Shares fell to as low as $111.30 in extended trading after closing at a record $119.89 in New York. The stock gained 58 percent in the past 12 months. Continue reading...
‘You Needed a Solid Beat and Raise': Texas Instruments' 2018 Outlook Disappoints Analyst
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