Dallas-based Texas Instruments says that the semiconductor industry is continuing to recover, but the pace is slowing.
TI made the pronouncement as part of its quarterly earnings report, with guidance for the company’s current quarter coming in below Wall Street expectations.
“The overall semiconductor market recovery is continuing, though at a slower pace than prior upturns, likely related to the broader macroeconomic dynamics and overall uncertainty,” President and Chief Executive Officer of Texas Instruments, Haviv Ilan, said during a call with analysts, per The Wall Street Journal.
Ilan said that customer inventories are persisting at low levels, but inventory depletion appears to be behind them. TI, he added, has the flexibility to weather a range of future scenarios.
Texas Instruments forecasts revenue of $4.22 billion to $4.58 billion for the fourth quarter, below estimates from analysts polled by FactSet.
The company expects earnings per share of $1.13 to $1.39, below market estimates of $1.41.
News of the softer-than-expected fourth quarter estimates sent Texas Instruments’ stock falling over 8% to $166.25 in after-hours trading.
TI recorded a profit of $1.36 billion for the recently wrapped-up third quarter, roughly in line with the same period last year. Earnings per share were $1.48, just below analyst forecasts of $1.49.
Revenue in Q3 was up 14% to $4.74 billion, beating the street’s estimates of a slightly more modest $4.65 billion.
TI’s analog unit’s revenue increased by 16% to $3.73 billion, while the embedded-processing segment posted revenue of $709 million, a 9% jump. Other revenue was also up, increasing 11% to $304 million during the quarter.
Earlier this week, The Dallas Express reported that the Dallas-based company announced yet another round of layoffs in North Texas. The news came as TI was continuing to seek approval to bring in more foreign workers to its Dallas-Fort Worth facilities under the controversial H-1B visa program.