SAN FRANCISCO, Sept 9 (Reuters) - Texas Instruments raised its forecast for third-quarter earnings per share on Wednesday amid a gradual recovery in the global semiconductor industry, and its shares rose.
The company raised its earnings estimate to 37 cents to 41 cents per share from a previous 29-39 cents, surpassing Street forecasts of 36 cents a share, according to Reuters Estimates.
TI also changed its third-quarter revenue forecast to $2.37 billion to $2.87 billion from a previous $2.5 billion to 2.8 billion. Analysts expect $2.68 billion, according to Reuters Estimates.
Dallas-based TI's chips are used in cellphones, televisions and industrial equipment.
Chipmakers have suffered as the economic downturn has dried up demand for PCs, cellphones, and other electronics. The Semiconductor Industry Association forecast in June that year-over-year chip sales would fall 21.3 percent to $195.6 billion in 2009.
But, despite gloomy forecasts, global semiconductor sales have risen sequentially for the past five months, through July, according to the Association.
Intel Corp in late August raised its outlook for third-quarter revenue, buoying its shares and the entire sector.
Shares in TI rose to $25.35 after-hours from $25.14 at the close on the New York Stock Exchange.
(Reporting by Clare Baldwin; editing by Carol Bishopric) Keywords: cb TEXASINSTRUMENTS/ (eddie.chan@thomsonreuters.com; +1 213 955 6750) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
The company raised its earnings estimate to 37 cents to 41 cents per share from a previous 29-39 cents, surpassing Street forecasts of 36 cents a share, according to Reuters Estimates.
TI also changed its third-quarter revenue forecast to $2.37 billion to $2.87 billion from a previous $2.5 billion to 2.8 billion. Analysts expect $2.68 billion, according to Reuters Estimates.
Dallas-based TI's chips are used in cellphones, televisions and industrial equipment.
Chipmakers have suffered as the economic downturn has dried up demand for PCs, cellphones, and other electronics. The Semiconductor Industry Association forecast in June that year-over-year chip sales would fall 21.3 percent to $195.6 billion in 2009.
But, despite gloomy forecasts, global semiconductor sales have risen sequentially for the past five months, through July, according to the Association.
Intel Corp in late August raised its outlook for third-quarter revenue, buoying its shares and the entire sector.
Shares in TI rose to $25.35 after-hours from $25.14 at the close on the New York Stock Exchange.
(Reporting by Clare Baldwin; editing by Carol Bishopric) Keywords: cb TEXASINSTRUMENTS/ (eddie.chan@thomsonreuters.com; +1 213 955 6750) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
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