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Texas Devices has carried out higher than different chip makers due to larger publicity to outperforming sectors akin to autos and industrials.
Dreamstime
Texas Devices offered a income forecast for the December quarter that was decrease than anticipated, citing deteriorating demand in practically each sector within the economic system. It despatched the corporate’s inventory decrease in after-hours buying and selling.
“Throughout the quarter we skilled anticipated weak point in private electronics and increasing weak point throughout industrial,” the corporate’s CEO Wealthy Templeton mentioned within the launch.
For the September quarter, the semiconductor firm reported earnings per share of $2.47, in contrast with Wall Avenue’s consensus estimate of $2.39, in accordance with FactSet. Income got here in at $5.24 billion, which was above analysts’ expectations of $5.14 billion.
However
Texas Devices
(ticker:
TXN
) forecast income for the present quarter of $4.4 billion to $4.8 billion, which was effectively under the consensus name for $4.94 billion.
On a convention name with traders and analysts, administration mentioned it was seeing rising order cancellations and deteriorating order charges within the present quarter. The corporate additionally mentioned it noticed weak point broadening within the industrial sector and expects extra weak point in practically all different sectors. Solely automotive manufacturing stays a powerful space.
The chip maker sells the fundamental building-block chips that go into merchandise in practically each sector of the economic system, from autos and industrial gear to client electronics. Due to the broad-based nature of the corporate’s greater than 100,000 prospects, traders take into account it to be a bellwether for the expertise trade, and the economic system.
Texas Devices shares dropped as a lot as 5% to $154.01 shortly after the discharge.
Texas Devices shares have been down 14% to date this 12 months as of Tuesday’s shut. For a similar interval, the
iShares Semiconductor ETF
,
which tracks the efficiency of the ICE Semiconductor Index, has declined 39%.
Write to Tae Kim at tae.kim@barrons.com