Texas Instruments, a chipmaker based in Dallas, has outperformed Wall Street’s expectations in the first quarter. The company projected earnings of $1.15 a share on sales of $3.8 billion for the current quarter, while analysts had anticipated earnings of $1.15 a share on sales of $3.74 billion. This positive news caused TXN stock to rise more than 5% in after-hours trading to 174.76 and also increased by 1.2% during regular trading hours to close at 165.42.
In the March quarter, Texas Instruments earned $1.20 a share on sales of $3.66 billion, outperforming analyst expectations of $1.07 a share on sales of $3.61 billion despite experiencing a 35% decline in earnings and a 16% decline in sales compared to the previous year. This marks the sixth consecutive quarter of declining sales and earnings for Texas Instruments, with analysts forecasting these declines to continue for at least the next two quarters due to ongoing cyclical downturn across all end markets.
Chief Executive Haviv Ilan mentioned that revenue declined across all end markets in the March quarter due to ongoing cyclical downturn, but despite this challenge, Texas Instruments remains a prominent player in the semiconductor manufacturing industry group with a ranking of No. 12 out of 33 stocks and an IBD Composite Rating of 40 out of 99. For more stories on consumer technology, software, and semiconductor stocks, follow Patrick Seitz on IBD Stock Checkup or on Twitter at @IBD\_PSeitz
