Texas Instruments Exceeds Q1 Expectations with Strong Performance in TXN Stock

Chipmaker Texas Instruments (TXN) exceeded Wall Street’s expectations for the first quarter and provided guidance above expectations for sales while meeting expectations for earnings in the second quarter. As a result, TXN stock saw an increase in after-hours trading.

In the March quarter, the Dallas-based company earned $1.20 per share on $3.66 billion in sales, surpassing 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. TXN stock currently ranks No. 12 out of 33 stocks in IBD’s semiconductor manufacturing industry group with an IBD Composite Rating of 40 out of 99.

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