Dec. 10 (Bloomberg) -- Texas Instruments Inc., the largest analog chipmaker, forecast fourth-quarter sales and profit in line with analysts’ predictions as demand for car components makes up for weaker orders for other industrial equipment.
Net income will be 44 cents to 48 cents a share on revenue of $2.92 billion to $3.04 billion, the Dallas-based company said in a statement yesterday. That compares with average analyst estimates of 46 cents and $2.99 billion, according to data compiled by Bloomberg. The company said in October profit would be 42 cents to 50 cents on sales of $2.86 billion to $3.1 billion.
Texas Instruments makes chips that are used in almost every digital device, from parts for space hardware to home electronics components, making its earnings an indicator for demand across the economy.
“The highlights this year had been industrial and automotive,” said Tore Svanberg, an analyst at Stifel Nicolaus & Co. in San Francisco. He has a hold rating on Texas Instruments’ shares. “The only market that’s holding up a little better is automotive. All the others are seeing sequential declines.”
Chief Executive Officer Rich Templeton is completing a shift to analog and embedded-processing markets and moving away from modems in mobile phones, an industry now led by Qualcomm Inc. While diversification has shielded Texas Instruments from a slump in any single area, such as personal computers, the company’s exit from the mobile-chip market has caused declining sales since 2011.
Texas Instruments shares were little changed in extended trading. The stock advanced less than 1 percent to $43.58 at yesterday’s close in New York, leaving it up 41 percent this year. It traded at the equivalent of $43.52 at 11:35 a.m. in Frankfurt today.
The company declined to give details on which markets or regions were performing better or worse than others. Texas Instruments will probably report results in January, based on the timing of previous earnings releases.
“There really is nothing that we would consider noteworthy,” Ron Slaymaker, a vice president at Texas Instruments, said on a call with analysts. “The quarter is tracking consistently with our expectations.”
To contact the reporter on this story: Ian King in San Francisco at email@example.com
To contact the editor responsible for this story: Pui-Wing Tam at firstname.lastname@example.org