Texas Instruments In. (TXN) on Tuesday raised its fourth quarter earnings outlook, but maintained the top end of its revenue forecast.
In a scheduled mid-quarter update, the world's second largest maker of mobile phone chips said it now expects fourth earnings to be $0.47 to $0.51 per share, compared to its prior guidance of $0.42 to $0.50 per share.
The the Dallas, Texas-based company also said it now expects fourth quarter revenue to be $2.90 billion to $3.02 billion, compared to its previous expectations of $2.78 billion to $3.02 billion.
Analysts polled by Thomson Reuters currently expect the company to earn $0.47 per share on revenue of $2.93 billion for the fourth quarter.
Texas Instruments makes chips for both low-end and high-end mobile phones. The low-end, used primarily in emerging markets like India and China, earns less margin, however, works out well due to the high volume involved. The high-end has higher profitability and is used in phones having better features, used primarily in the developed countries. The company makes chips for digital cameras and televisions also, while its educational segment is known for the calculators it makes.
In October, Texas Instruments had reported a 4% decline in third quarter profit, although its earnings per share came in above analysts' expectations.
Texas Instruments now joins a few other chipmaker who have recently raised their financial targets. Xilinx, Inc. (XLNX ) earlier Tuesday raised its third quarter sales and gross margin outlook, citing broad-based strength across all end market categories and geographies. Programmable Chip maker Altera Corp. (ALTR) late last month raised its fourth quarter sales forecast.
TI shares, which have traded in a range of $13.70 to $27.00 over the past year, closed Tuesday's regular trading session at $26.33, down 29 cents or 1.09% and lost an additional 44 cents or 1.67% in after hours trading.
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