Texas Instruments Revenues Miss Street, Outlook Weak; Shares Down 5%

(RTTNews) - Analog chip maker Texas Instruments Inc. (TXN), Tuesday reported a 22 percent jump in profit for the third quarter, driven largely by better cost control and higher revenues. Earnings for the quarter trumped analysts' expectations, however, revenues fell short of expectations. The company also detailed a weak outlook for the fourth quarter, sending its shares down 5 percent in extended trading session.

Dallas, Texas-based Texas Instrument's profit for the third quarter rose to $1.57 billion or $1.58 per share from $1.29 billion or $1.26 per share last year. Analysts polled by Thomson Reuters expected the company to earn $1.53 per share.

Revenues for the quarter grew 4 percent to $4.26 billion from $4.12 billion in the same quarter last year. Analysts had a consensus revenue estimate of $4.30 billion for the quarter.

The company said demand for its products "slowed across most markets." In its core businesses, Analog revenue grew 8 percent and Embedded Processing declined 4 percent from the same quarter a year ago.

Looking forward to the fourth quarter, Texas Instrument's expects earnings of $1.14 to $1.34 per share and revenues of $3.60 billion to $3.90 billion. Analysts currently estimate earnings of $1.38 per share and revenues of $4.00 billion.

TXN closed Tuesday's trading at $100.25, up $0.53 or 0.53%, on the NYSE. The stock, however, slipped $5.25 or 5.24 % in the after-hours trading.