Texas InstrumentsTexas Instruments Inc. has posted a second-quarter revenue forecast in line with estimates, indicating demand for chips used in vehicles and factories isn't coming at the rate some analysts had predicted, having a profit of $1.68 to $1.92 a share.According to Bloomberg figures on average, analysts predicted a profit of $1.68 a share and sales of $4.16 billion, according to data compiled by Bloomberg.
While demand for chips used in cars has come back, some analysts are concerned that consumer spending on home electronics and gear needed to study and work at home will begin to slow as new pandemic restrictions ease.
Texas Instruments has tens of thousands of products and more than 100,000 customers who make everything from consumer electronics to space rockets.This reach as the largest producer of analog and embedded processing chips makes the company's results an important indicator of demand across economies.
The chipmaker did more than 80% of its manufacturing internally and built inventory last year while orders declined, which has helped it to respond to industrywide shortages this year. In the first quarter, net income rose to $1.75 billion or $1.87 per share from $1.17 billion or $1.24 a share a year earlier.The revenues rose to $4.29 billion, up 29% from last year.That compares to analysts' average estimate of $4 billion.
The shares fell in extended trading by about 2% after closing at $190.21 in New York.The stock has kept pace with Philadelphia Stock Exchange Semiconductor Index losses this year, rising by around 16%.
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