Texas Instruments forecasts fourth-quarter below estimates
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1970-01-01 08:00
(Reuters) -Analog chipmaker Texas Instruments forecast fourth-quarter revenue and profit below Wall Street estimates on Tuesday, as demand suffers across

(Reuters) -Analog chipmaker Texas Instruments forecast fourth-quarter revenue and profit below Wall Street estimates on Tuesday, as demand suffers across its key markets including industrial as vendors pull back on orders amid sluggish economic growth.

Shares of the Dallas, Texas-based company fell 4.3% in trading after the bell.

Broader demand from the industrial market – Texas Instruments' biggest by revenue share – has worsened, and the so-far resilient automotive sector has also started showing cracks.

The United Auto Workers strike could amplify concerns that chip demand from that sector would curtail sooner-than-expected, analysts said.

Elevated borrowing costs for a prolonged period has dented end-user demand for vehicles, while bleak demand trends across sectors in China have also weighed on chipmakers. China is a key market for Texas Instruments, with about 25% of its revenue coming from companies headquartered there.

The company forecast current-quarter revenue between $3.93 billion and $4.27 billion, compared with analysts' average estimates of $4.49 billion, according to LSEG data.

The company forecast current-quarter profit per share in the range of $1.35 and $1.57, compared to analysts' estimate of $1.76 per share.

(Reporting by Chavi Mehta in Bengaluru; Editing by Shailesh Kuber)

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