Shares of Texas Instruments (TXN) are down 5% after the microchip maker provided a revenue forecast for the current fourth quarter that was below Wall Street expectations.
For this year’s third quarter, the semiconductor company reported earnings per share (EPS) of $1.85 U.S., which was better than the consensus estimate among analysts of $1.82 U.S., according to data from FactSet.
Revenue in Q3 amounted to $4.53 billion U.S., which was below expectations of $4.60 billion U.S.
However, despite the strong Q3 print, Texas Instruments provided weak guidance for the final quarter of this year.
The company said it expects revenue in a range of $3.93 billion U.S. to $4.27 billion U.S., which is below the $4.50 billion U.S. that analysts had penciled in for the company.
Texas Instruments’ stock dropped 5% in after-hours trading on news of the disappointing guidance, which overshadowed the Q3 performance.
The company’s microchips and semiconductors can be found in products ranging from automobiles to consumer electronics.
Texas Instruments’ stock has declined 10% year-to-date and currently trades at $146.92 U.S. per share.
