Texas Instruments (TXN) outperformed Wall Street expectations in the first quarter, providing guidance for sales above expectations while meeting earnings targets in the second quarter. As a result, TXN stock saw an increase in after-hours trading.
In the March quarter, Texas Instruments earned $1.20 per share on $3.66 billion in sales, exceeding analyst forecasts of $1.07 per share on $3.61 billion in sales. However, earnings decreased by 35% and sales declined by 16% compared to the previous year. This marks the sixth consecutive quarter of declining sales and earnings on a year-over-year basis for Texas Instruments, with analysts anticipating this trend to continue for at least the next two quarters.
For the current quarter, TI provided earnings guidance of $1.15 per share on $3.8 billion in sales, which aligns with analysts’ expectations. In the same quarter the previous year, the company earned $1.87 per share on $4.53 billion in sales. After reporting these results, TXN stock rose more than 5% in after-hours trading and 1.2% during the regular session to close at 165.42.
According to Chief Executive Haviv Ilan, revenue declined across all end markets in the March quarter as Texas Instruments navigates a cyclical downturn
