Texas Instruments (TXN) exceeded Wall Street’s expectations for the first quarter and provided guidance above expectations for sales while meeting expectations for earnings in the second quarter. The company earned $1.20 per share on $3.66 billion in sales, surpassing analyst forecasts of $1.07 per share on $3.61 billion in sales. However, earnings decreased by 35% and sales declined by 16% compared to the previous year, marking the sixth consecutive quarter of declining sales and earnings on a year-over-year basis for Texas Instruments.
In the March quarter, revenue declined across all end markets as Texas Instruments navigates a cyclical downturn. Despite this, the company’s stock saw an increase in after-hours trading after reporting these results. For the current quarter, TI provided earnings guidance of $1.15 per share on $3.8 billion in sales, which aligns with analysts’ expectations. After reporting these results, TXN stock rose more than 5% in after-hours trading and 1.2% during the regular session to close at 165.42.
According to Chief Executive Haviv Ilan, revenue declined across all end markets in the March quarter as Texas Instruments navigates a cyclical downturn. Currently ranked No. 12 out of 33 stocks in IBD’s semiconductor manufacturing industry group with an IBD Composite Rating of 40 out of 99, investors may be interested in following the rebound of AI stocks after a recent sell-off or the return to growth by Taiwan Semiconductor in Q1 with a cautious view moving forward.
For more stories on consumer technology, software, and semiconductor stocks, follow Patrick Seitz on X (@IBD\_PSeitz). Additionally, investors may also be interested in following futures as they rise along with AI stocks bouncing back and Tesla slashing prices.
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