DOW JONES NEWSWIRES
Texas Instruments Inc.'s (TXN) fourth-quarter earnings rose 44%,
with per-share earnings easily topping its own forecasts, as the
chip maker's sales increased.
TI also forecast first-quarter earnings of 54 cents to 62 cents
a share on revenue of $3.27 billion to $3.55 billion. Analysts
surveyed by Thomson Reuters expect 57 cents on $3.33 billion in
revenue.
Still, shares slid 2.2% to $33.90 in after-hours trading as the
company said orders fell 4% from a year earlier and 9% from the
prior quarter.
"Our strong financial results for the fourth quarter reinforce
our view that the inventory-driven downturn that started in the
second half of 2010 is now mostly complete," said Chairman and
Chief Executive Rich Templeton.
The company has continued to benefit from more need for both its
analog and embedded chips. Although the market for notebooks,
hard-disk drives and TVs has continued to be weak, notebook revenue
has been stabilizing and demand for communications infrastructure,
videogame consoles and smartphones has been strong.
TI reported fourth-quarter profit of $942 million, or 78 cents a
share, up from $655 million, or 52 cents, a year earlier. Revenue
jumped 17% to $3.53 billion.
In December, TI narrowed its fourth-quarter guidance to 61 cents
to 65 cents of earnings and $3.43 billion to $3.57 billion of
revenue--keeping the midpoint of both forecasts unchanged.
Gross margin edged up to 53% from 52.9%.
Sales of analog chips, which made up 43% of total revenue,
climbed 20%, while earnings rose 27%.
-By Nathan Becker, Dow Jones Newswires; 212-416-2855;
nathan.becker@dowjones.com