July 24, 2018 / 8:24 PM / 5 months ago

Texas Instruments third-quarter profit forecast beats estimates

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

(Reuters) - Texas Instruments Inc (TXN.O), whose CEO Brian Crutcher resigned a week ago, forecast better-than-expected revenue and profit for the third quarter as it benefits from higher sales of semiconductors used in cars and industrial machinery.

The Dallas Texas-based chipmaker, which also develops analog semiconductors for personal electronics and communication equipments, has benefited in recent years as many automakers pivot toward self-driving vehicle technology.

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

The company expects revenue of between $4.11 billion and $4.45 billion, and earnings of $1.41 to $1.63 per share for the third quarter.

Analysts, on average, had forecast revenue of $4.27 billion and earnings of $1.48 per share, according to Thomson Reuters I/B/E/S.

The earnings report comes a week after Crutcher stepped down just six weeks into the role, following a report that he had violated the chipmaker’s code on personal behavior.

The company’s net income rose to $1.41 billion, or $1.40 per share, in the second quarter ended June 30, from $1.06 billion, or $1.03 per share, a year earlier.

The company had pre-announced second-quarter revenue of $4.02 billion last Tuesday, beating estimates of $3.97 billion.

Reporting by Sonam Rai in Bengaluru; Editing by Shounak Dasgupta

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