Texas Instruments issues weak Q3 guidance, stock slips more than 3% after hours
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Shares of Texas Instruments (NASDAQ:TXN) on Tuesday fell 3.4% to $179.68 in extended trading, after the analog and embedded semiconductors maker provided Q3 guidance ranges with midpoints below Wall Street estimates.
Texas Instruments (TXN), or TI, forecast earning between $1.68 and $1.92 per share in Q3. The midpoint of that is $1.80, significantly below the consensus EPS estimate of $1.91.
TI anticipates Q3 revenue to be in the range of $4.36B to $4.74B, the midpoint of which is $4.55B. The consensus revenue estimate is $4.59B.
TI, with its portfolio of around 80K products and 15 manufacturing sites across the world, is seen as a bellwether for the semiconductor industry.
TI's Q2 EPS of $1.87 beat estimates by 10 cents, while revenue of $4.53B also beat expectations by $160M.
However, the revenue figure plummeted more than 13% Y/Y.
"Revenue increased 3% sequentially and decreased 13% from the same quarter a year ago. Similar to last quarter, we experienced weakness across our end markets with the exception of automotive," TI CEO Haviv Ilan said in a statement.
TI's Q2 performance comes on the heels of a tepid Q1 report in April, in which it disclosed a revenue decline both sequentially and Y/Y. TI had said that it had experienced weaker demand due to inventory reductions by its customers, a trend that it expected to continue in Q2.
Last week, top chipmaker Taiwan Semiconductor Manufacturing (TSM) slashed its revenue outlook for 2023, which resulted in a steep sell-off across a host of chip stocks.
"Our cash flow from operations of $7.4B for the trailing 12 months again underscored the strength of our business model, the quality of our product portfolio and the benefit of 300-mm production," TI CEO Ilan said in Tuesday's press release. 
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