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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.

Copyright The Financial Times Limited 2018. All rights reserved.

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