Texas Instruments Inc. (TXN: Quote), the world's largest maker of analog chips, on Tuesday narrowed its third quarter revenue guidance range, keeping the mid-point unchanged, but raised the low end of its earnings outlook range for the quarter.
In a scheduled mid-quarter update, the Dallas, Texas-based company narrowed its third quarter revenue guidance to a range of $3.27 billion to $3.41 billion from its previous guidance of $3.21 billion to $3.47 billion.
The company also said it now expects third quarter earnings to be in the range of $0.38 to 0.42 per share, compared to its prior guidance of $0.34 to 0.42 per share.
The company said in July that its third quarter earnings per share will be impacted by about $0.07 per share from acquisition and restructuring charges.
Analysts polled by Thomson Reuters currently expect the company to earn $0.45 per share on revenue of $3.34 billion for the third quarter. Analysts' estimates typically exclude special items.
TI shares, which have traded in a range of $25.78 to $34.24 over the past year, closed Tuesday's regular trading session at $28.58, down 9 cents. In after hours trading, the stock is currently losing 23 cents, reversing a more than 1.9% gain earlier.
TI makes chips used in phones, telecommunications equipments and calculators, making the company's earnings an indicator of demand across the economy.
However, the company has reported a series of profit declines in recent times, hurt by weaker demand and costs associated with the company's acquisition of smaller rival National Semiconductor Corp.
TI's latest mid-quarter update allayed some investor concerns after Intel Corp. (INTC), the world's biggest chipmaker, last week cut its third quarter revenue outlook, citing weaker than expected demand for chips as customers reduced inventory and sales of personal computers slowed amid a challenging macroeconomic environment. The Santa Clara, California-based company also withdrew all of its other quarterly and full year expectations, and said they would be updated with its third quarter earnings report on October 16.
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by RTT Staff Writer
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