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Texas Instruments Q2 Results Beat Street, Shares Up 6%

Shares of Texas Instruments Inc. (TXN) gained over 6% in extended trading session on Tuesday after the analog chip maker reported a second-quarter profit and revenue that trumped analysts' expectations. The company also issued a strong financial outlook for the third quarter.

Dallas, Texas-based Texas Instrument's second-quarter profit dropped to $1.31 billion or $1.36 per share from $1.41 billion or $1.40 per share last year. Analysts polled by Thomson Reuters expected the company to earn $1.22 per share.

Revenues for the quarter dropped 9 percent to $3.67 billion from $4.02 billion in the same quarter last year. Analysts had a consensus revenue estimate of $3.60 billion for the quarter.

CEO Rich Templeton said revenues dropped due to broad-based weakness. Analog revenues declined 6% and Embedded Processing declined 16% from the same quarter a year ago.

Looking forward to the third quarter, Texas Instrument's expects earnings of $1.31 to $1.53 per share and revenues of $3.65 billion to $3.95 billion. Analysts currently estimate earnings of $1.24 per share and revenues of $3.60 billion.

TXN closed Tuesday's trading at $120.07, up $1.89 or 1.60%, on the NYSE. The stock further gained $7.33 or 6.10% in the after-hours trade.

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