January 22, 2020 / 9:19 PM / 25 days ago

Texas Instruments forecasts current-quarter revenue above estimates

FILE PHOTO: A Texas Instruments Office is shown in San Diego, California, U.S., April 24, 2018. REUTERS/Mike Blake

(Reuters) - Chipmaker Texas Instruments Inc (TXN.O) forecast revenue for the current quarter above analysts’ estimates on Wednesday and said most of its markets showed signs of stabilizing.

The Dallas, Texas-based company, the first big chipmaker to report in this earnings cycle, expects to benefit from an increase in demand for its chips used in 5G infrastructure building.

Texas, whose broad lineup of products makes it a proxy for the chip industry, said it expects first-quarter revenue between $3.12 billion and $3.38 billion, above analysts’ expectations of $3.21 billion, according to IBES data from Refinitiv.

The company’s net income fell to $1.07 billion, or $1.12 per share, in the fourth quarter ended Dec. 31, from $1.24 billion, or $1.27 per share, a year earlier.

Excluding items, the company earned $1.12 per share, above Wall Street expectation of $1.02.

Revenue dropped 10% to $3.35 billion, but came in above the average analyst estimate of $3.22 billion.

Shares of the company were down 1.5% in extended trading after closing up nearly 2% on Wednesday.

Reporting by Amal S in Bengaluru; Editing by Maju Samuel

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