Texas Instruments beats quarterly profit beats estimates, shares rise

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

(Reuters) – Apple Inc (AAPL.O) supplier Texas Instruments Inc (TXN.O) beat Wall Street’s forecast on quarterly profit on Wednesday but missed on revenue, a performance that comes amid concerns about slowing smartphone sales.

Shares of the Dallas-based company rose nearly 1 percent in after-hours trading.

Texas Instruments, which supplies touchscreen controllers, power management chips, and a control device for Apple’s iPhones and iPads, said revenue overall fell 1 percent to $3.72 billion. That missed analysts’ average estimate of $3.74 billion, according to IBES data from Refinitiv.

Chipmakers globally have faced challenges in recent months arising from weaker demand, inventory adjustments and U.S.-China trade issues.

Apple this month cut its quarterly sales forecast due to poor iPhone demand in China, battering stocks of chipmakers including Texas Instruments.

TI’s net income surged to $1.24 billion or $1.27 per share in the fourth quarter ended Dec. 31, from $344 million or 34 cents a share a year earlier, thanks to a significantly lower provision for income taxes.

Excluding one-time items, the company earned $1.27 per share, beating analysts estimates of $1.24.

Reporting by Sayanti Chakraborty in Bengaluru; Editing by Sai Sachin Ravikumar

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