Texas Instruments, a chipmaker headquartered in Dallas, outperformed analyst expectations for the first quarter by earning $1.20 a share on sales of $3.66 billion, compared to analyst expectations of $1.07 a share on sales of $3.61 billion. Despite this positive news, the company experienced a 35% decline in earnings and a 16% decline in sales compared to the previous year, marking the sixth consecutive quarter of declining sales and earnings for Texas Instruments.
Analysts forecast that these declines will continue for at least the next two quarters. For the current quarter, Texas Instruments projected earnings of $1.15 a share on sales of $3.8 billion, based on the midpoint of its guidance. This is slightly lower than analysts anticipated earnings of $1.15 a share on sales of $3.74 billion in the same period last year.
Following the positive earnings report, TXN stock rose 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. Chief Executive Haviv Ilan mentioned that revenue declined across all end markets in the March quarter due to ongoing cyclical downturns in semiconductor manufacturing industry group where TXN is ranked No 12 with an IBD Composite Rating of 40 out of 99, highlighting it as one prominent player in this industry for more stories on consumer technology, software and semiconductor stocks follow Patrick Seitz on IBD Stock Checkup or Twitter @IBD\_PSeitz