SANTA CLARA (dpa-AFX) - Texas Instruments Inc. (TXN), the world's largest maker of analog chips, on Monday narrowed its second quarter revenue and earnings outlook ranges while keeping their mid-points unchanged from its prior forecast.
In a scheduled mid-quarter update, the Dallas, Texas-based company said it now expects second quarter revenue to be in the range of $3.28 billion to $3.42 billion, compared to its prior guidance of $3.22 billion to $3.48 billion.
Similarly, the company narrowed its second quarter earnings guidance to a range of $0.32 to $0.36 per share from its previous guidance of $0.30 to $0.38 per share.
Analysts polled by Thomson Reuters currently expect the company to earn $0.41 per share on revenue of $3.35 billion for the second quarter. Analysts' estimates typically exclude special items.
TI makes chips used in phones, telecommunications equipments and calculators, making the company's earnings an indicator of demand across the economy.
The company is scheduled to release second quarter financial results on July 22.
Programmable chip maker Altera Corp. (ALTR) said last week that it continues to expect second quarter revenue to grow 14% to 18% from the first quarter level.
Altera said its 40-nm and 28-nm products will be up strongly from first quarter levels, and that growth will be broad across most of the company's vertical markets as previously expected.
Chipmakers have reported weak results in recent quarters because of wilting demand. In April, TI reported a 60% drop in first quarter profit, hurt by weaker demand, costs associated the company's acquisition of smaller rival National Semiconductor Corp. and restructuring charges related to the planned closures of 2 older plants.
TI shares, which have traded in a range of $24.34 to $34.24 over the past year, closed Monday's regular trading session at $27.65, down 87 cents or 3.05. The stock is currently gaining 36 cents or 1.30% in after hours trading.
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