October 23, 2018 / 8:23 PM / a year ago

Texas Instruments forecasts lower-than-expected profit, shares fall

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

(Reuters) - Texas Instruments Inc (TXN.O) posted smaller-than-expected quarterly revenue on Tuesday and forecast current quarter sales and profit below analysts’ estimates as the chipmaker wrestled with slowing demand for its products.

Shares of the company fell nearly 6 percent in extended trading after Chief Executive Officer Rich Templeton said demand for the company’s products slowed across most markets.

The company said it expected fourth-quarter revenue of $3.60 billion to $3.90 billion and earnings of $1.14 to $1.34 per share.

Analysts on average had estimated revenue of $4 billion and earnings of $1.38 per share, according to Refinitiv data.

The company’s chips are used in industries ranging from automotive to consumer electronics.

The automotive market contributed 19 percent to the company’s revenue in 2017, while the industrial sector added 35 percent to its sales.

Net income rose to $1.57 billion, or $1.58 per share, in the third quarter ended Sept. 30 from $1.29 billion, or $1.26 per share, a year earlier.

Revenue rose to $4.26 billion from $4.12 billion.

Analysts, on average, had expected the company to earn $1.53 per share on revenue of $4.30 billion.

Reporting by Vibhuti Sharma in Bengaluru; Editing by Anil D'Silva

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