Chipmaker Texas Instruments Tops Q3 Views But Guides Low

Chipmaker Texas Instruments (TXN) late Tuesday topped Wall Street’s targets for the third quarter but missed views with its guidance for the current period. TXN stock seesawed in extended trading.

The Dallas-based company earned $1.47 a share on sales of $4.15 billion in the September quarter. Analysts polled by FactSet had expected Q3 earnings of $1.38 a share on sales of $4.12 billion. On a year-over-year basis, TI earnings declined 21% while sales dropped 8%.

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For the current quarter, Texas Instruments guided to earnings of $1.18 a share on sales of $3.85 billion. That’s based on the midpoint of its outlook. Wall Street was modeling earnings of $1.34 a share on sales of $4.06 billion. In the fourth quarter last year, Texas Instruments earned $1.49 a share on sales of $4.08 billion.

Texas Instruments has now posted eight consecutive quarters of declining sales and earnings on a year-over-year basis as it navigates a cyclical downturn in demand. Wall Street isn’t predicting growth for TI until the first quarter of 2025.

TI Chief Executive Haviv Ilan said the company’s revenue increased 9% sequentially in the third quarter. “Industrial continued to decline sequentially, while all other end markets grew,” he said in a news release.

TXN Stock Wavers After Q3 Report

In after-hours trading on the stock market today, TXN stock climbed more than 2% to 198. During the regular session Tuesday, TXN stock dropped 0.9% to close at 193.97.

Despite its struggles, TXN stock notched an all-time high of 214.66 on Aug. 30.

Texas Instruments ranks eighth out of 32 stocks in IBD’s semiconductor manufacturing industry group, according to IBD Stock Checkup. TXN stock has a weak IBD Composite Rating of 39 out of 99.

Follow Patrick Seitz on X, formerly Twitter, at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.

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