TI 3Q earnings up 60 pct, sees slowdown in 4Q
NEW YORK (AP) -- Chip-maker Texas Instruments Inc. said Monday that third-quarter income soared 60 percent as it continued to satisfy pent-up demand after the recession, but the company expects things to cool down for the rest of the year, as consumer demand is tepid.
The forecast echoes that of other chip-makers including Intel Corp., which are also expecting sales to moderate in the fourth quarter.
TI, whose chips go into everything from cell phones to cars, said it earned $859 million, or 71 cents per share, in the July to September period. That topped the average forecast of analysts polled by Thomson Reuters by 2 cents.
In the same period last year, the Dallas-based company earned $538 million, or 42 cents per share.
Revenue rose 30 percent to $3.74 billion, beating the analyst forecast of $3.69 billion. A year ago, revenue was $2.88 billion.
"Demand from industrial markets was especially strong, while consumer demand cooled, impacting markets such as computing and televisions," said TI CEO Rich Templeton.
TI chips regulate and convert electric power in TVs and PCs and handle other tasks such as communication with hard drives.
Fourth quarter revenue already tends to be lower because manufacturers have already stocked up parts for the holiday season. Templeton also expects weakness this quarter because of "continued soft demand in computing and consumer markets, and slowing growth in the industrial market."
For the fourth quarter, TI forecast net income of 59 cents to 67 cents per share, and revenue of $3.36 billion to $3.64 billion. Analysts had been expecting 63 cents per share in earnings and $3.51 billion in revenue.
TI shares were down 20 cents, or 0.7 percent to $28.78 in extended trading, after the release of the results. In the regular session, shares closed up 32 cents, or 1.1 percent, at $28.98.