{"id":23385,"date":"2023-04-25T21:49:03","date_gmt":"2023-04-25T21:49:03","guid":{"rendered":"http:\/\/lynettelockhart.com\/client\/texas-instruments-forecasts-second-quarter\/"},"modified":"2023-04-25T21:53:27","modified_gmt":"2023-04-25T21:53:27","slug":"ti-forecasts-downbeat-second","status":"publish","type":"post","link":"http:\/\/lynettelockhart.com\/client\/ti-forecasts-downbeat-second\/","title":{"rendered":"TI forecasts downbeat second quarter on growing demand weakness"},"content":{"rendered":"

By Chavi Mehta<\/p>\n

(Reuters) -Texas Instruments forecast second-quarter revenue and profit below Wall Street estimates on Tuesday, signaling demand weakness is spreading to most of the analog chipmaker’s end-markets.<\/p>\n

A chip supply glut, which started from the consumer electronics market, has seeped into broader markets like enterprise and industrial as rising interest rates saps spending across the board.<\/p>\n

The company’s revenue in both the personal electronics segment and the division that caters to data center servers fell 30% in the first quarter from the fourth quarter. Industrial market revenue was flat.<\/p>\n

For TI, which said overstocked customers were still purging excess inventory, this marks trouble as it derives about 70% of its revenue from these markets, with industrial comprising about 40%.<\/p>\n

The glut has also hurt chip prices in the market, pressuring profit margins of chipmakers like Texas Instruments.<\/p>\n

The company, which has forecast capital expenditure to average around $5 billion per year from 2023 to 2026, sees current-quarter profit per share between $1.62 and $1.88, below Refinitiv estimates of $1.82.<\/p>\n

Still automotive was a bright spot in the first quarter, with revenue up mid-single digits, the company said. Quarterly earnings per share were $1.85, beating estimates of $1.78.<\/p>\n

But Summit Insights Group analyst Kinngai Chan warned industry checks already indicated a weakening order in the automotive market.<\/p>\n

The company forecast revenue in the current quarter in the range of $4.17 billion to $4.53 billion versus estimates of $4.44 billion. <\/p>\n

Revenue fell 11% to $4.38 billion in the quarter ended March 31 from a year earlier in line with expectations, declining the most in the last ten quarters.<\/p>\n

Shares of the Dallas, Texas-based company were up 1% in extended trading after closing down about 4%.<\/p>\n

(Reporting by Chavi Mehta in Bengaluru; Editing by Shailesh Kuber and Maju Samuel)<\/p>\n

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By Chavi Mehta (Reuters) -Texas Instruments forecast second-quarter revenue and profit below Wall Street estimates on Tuesday, signaling demand weakness is spreading to most of the analog chipmaker’s end-markets. A chip supply glut, which started from the consumer electronics market, has seeped into broader markets like enterprise and industrial as rising interest rates saps spending […]<\/p>\n","protected":false},"author":8,"featured_media":23386,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":""},"categories":[1213],"tags":[1223],"class_list":["post-23385","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-u-s-business","tag-updated"],"jetpack_featured_media_url":"http:\/\/lynettelockhart.com\/client\/wp-content\/uploads\/Reuters_Direct_Media\/USOnlineReportBusinessNews\/tagreuters.com2023binary_LYNXMPEJ3O0V9-VIEWIMAGE.jpg","_links":{"self":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts\/23385","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/comments?post=23385"}],"version-history":[{"count":3,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts\/23385\/revisions"}],"predecessor-version":[{"id":23538,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts\/23385\/revisions\/23538"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/media\/23386"}],"wp:attachment":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/media?parent=23385"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/categories?post=23385"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/tags?post=23385"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}