The stock of Texas Instruments (TXN) is up 7% after the legacy semiconductor company reported better-than-expected financial results for this year’s first quarter.
For Q1, Texas Instruments reported earnings per share $1.20 U.S., down 35% from a year ago but ahead of Wall Street forecasts of $1.07 U.S.
Revenue during the first three months of the year came in at $3.66 billion U.S., down 16% from a year ago, but also ahead of analyst estimates of $3.60 billion U.S.
While the earnings beat has Texas Instruments’ stock marching higher, the company warned that it expects a recent pattern of weak microchip and semiconductor demand to continue in the current second quarter of the year.
Texas Instruments primarily makes chips and semiconductors for use in the automotive industry and industrial applications.
In terms of guidance, Texas Instruments sees Q2 revenue of $3.65 billion U.S. to $3.95 billion U.S., and profits of $1.05 U.S. to $1.25 U.S. per share.
The Q2 guidance aligns with Wall Street forecasts.
Prior to today (April 24), the stock of Texas Instruments had declined 6% over the last 12 months to trade at $165.47 U.S. per share.
