DALLAS (dpa-AFX) - Chip maker Texas Instruments Inc (TXN), Wednesday reported a 35 percent jump in first-quarter profit, on strong demand for its analog chips, microcontrollers and processors. Results for the quarter topped Wall Street estimates.
The company also detailed a strong guidance for the second quarter, with its shares up 2.3 percent in after-hours trade on the Nasdaq.
Texas Instruments is a leading maker of analog chips used in phones, telecommunications equipments and calculators. Its results come as CEO Rich Templeton strives to buoy sales after a string of annual declines stemming its exit of the market for digital modems for mobile phones.
The Dallas, Texas-based company posted first quarter net income of $487 million or $0.44 per share, compared with $362 million or $0.32 per share a year ago. On average, 30 analysts polled by Thomson Reuters expected earnings of $0.41 per share for the quarter. Analysts' estimates typically exclude special items.
Results for the quarter included a gain of $37 million, which increased earnings by $0.02 per share, for sales of a site and other assets as part of restructuring actions.
Revenue for the first quarter climbed 3 percent to $2.98 billion from $2.89 billion in the prior year. Thirty-three analysts had a consensus revenue estimate of $2.96 billion for the quarter.
Among segments, analog revenue for the quarter grew 11 percent to $1.84 billion, on growth at all product lines. Embedded Processing revenue climbed 17 percent to $656 million, due to mainly to microcontrollers.
Other revenue for the quarter slid 28 percent year-over-year to $490 million, due to legacy wireless products.
For the second quarter, Texas Instruments expects earnings of $0.55 to $0.63 per share, including charges, and revenue of $3.14 billion to $3.40 billion. Analysts estimate earnings of $0.52 per share on revenue of $3.15 billion for the quarter.
In January, Texas Instruments said it will slash 1,100 jobs worldwide as it aims to cut costs in in Embedded Processing segment and in Japan.
Also today, mobile chip maker Qualcomm Inc (QCOM) reported an increase in second-quarter profit, due mainly on a four percent growth in revenues. Quarterly earnings topped Wall Street estimates, but revenues fell short of expectations as the smartphone market shows some satiety in mature markets and is weaning toward China.
Qualcomm posted quarterly net income of $1.96 billion or $1.14 per share, compared with $1.87 billion or $1.06 per share last year. Adjusted earnings were $1.31 per share, compared with $1.17 per share a year ago. Revenues climbed to $6.37 billion from $6.12 billion. Analysts expected earnings of $1.22 per share on revenues of $6.48 billion.
Texas Instruments stock closed Wednesday at $46.46, down $0.13 or 0.28%, on a volume of about 5 million shares on the Nasdaq. In after hours, the stock gained $1.06 or 2.28% at $47.52. In the past year, the stock has traded in the range of $34.10 - $49.77.
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