Chipmaker Texas Instruments Inc. (TXN) on Monday raised the low end of its first quarter revenue and earnings guidance, with the mid-points of the new ranges coming in above analysts' current consensus estimates.
In a scheduled mid-quarter update, the Dallas, Texas-based company said it now expects first quarter revenue to be in the range of $3.07 billion to $3.19 billion, compared to its the prior guidance of $2.95 billion to $3.19 billion.
The world's second biggest maker of mobile phone chips also said it now expects first quarter earnings to be $0.48 to $0.52 per share, compared to its previous guidance of $0.44 to $0.52 per share.
Analysts polled by Thomson Reuters currently expects the company to earn $0.49 per share on revenue of $3.08 billion for the first 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.
For the fourth quarter, the company had reported net income for the fourth quarter of $655 million or $0.52 per share, compared to $107 million or $0.08 per share in the fourth quarter of the previous year. Fourth quarter revenue rose 21% to $3.01 billion from $2.49 billion a year earlier.
TI shares, which have traded in a range of $14.16 to $27.00 over the past year, closed Monday's regular trading session at $24.69, down 28 cents or 1.12%. The stock is currently losing 19 cents in after hours trading.
For comments and feedback: editorial@rttnews.com