TXN Stock: Texas Instruments Posts Mixed Q4 Report


Chipmaker Texas Instruments (TXN) late Tuesday beat Wall Street’s earnings target for the fourth quarter but came up short on sales. It also guided well below estimates for the current period. TXN stock fell in extended trading.


The Dallas-based company earned $1.49 a share on sales of $4.08 billion in the December quarter. Analysts polled by FactSet had expected TI earnings of $1.47 a share on sales of $4.12 billion. On a year-over-year basis, TI earnings fell 30% while sales declined 13%.

Texas Instruments has been hurt by weakness in the automotive and industrial markets.

“Revenue decreased 10% sequentially,” Chief Executive Haviv Ilan said in a news release. “During the quarter we experienced increasing weakness across industrial and a sequential decline in automotive.”

TXN Stock Drops On Weak Guidance

For the current quarter, TI forecast earnings of $1.06 a share on sales of $3.6 billion. That’s based on the midpoint of its guidance. Analysts had been expecting earnings of $1.40 a share on sales of $4.05 billion in the first quarter. In the year-earlier period, Texas Instruments earned $1.85 a share on sales of $4.38 billion.

In after-hours trading on the stock market today, TXN stock dropped 3.6% to 168. During the regular session Tuesday, TXN stock dipped 0.3% to close at 174.34.

In the past year, TXN stock has had three failed breakouts, according to IBD MarketSmith charts. It tripped the 7%-to-8% stop-loss sell rule in each instance.

Follow Patrick Seitz on X, formerly Twitter, at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.


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