Experimental feature

Listen to this article

00:00
00:00
Experimental feature

Texas Instruments posted a stronger-than-expected rise in quarterly sales and profits, helped by robust demand for chips meant for automobiles and a stronger industrial market.

The group, considered a semiconductor industry bellwether, said its revenues climbed 13 per cent in the first quarter from the previous year to $3.4bn. Net profits rose to $997m, or 97 cents a share, from $711m, or 69 cents a share, in the first quarter of 2016.

Excluding a one-time item, profits came in at 89 cents a share. TI’s results compared with Wall Street forecasts for earnings per share of 83 cents on revenues of $3.31bn. Gross margin, an important profitability metric, was 63 per cent, also beating estimates of 62.3 per cent.

However, the low-end of Dallas-based TI’s current quarter forecast missed estimates. It projected sales of $3.4bn – $3.7bn, with EPS of 89 cents – $1.01, compared with estimates of $3.5bn and 90 cents, respectively.

Shares were little changed in after hours trading.

Be alerted on Front page

Copyright The Financial Times Limited 2018. All rights reserved.

Comments have not been enabled for this article.