Shares of Texas Instruments Inc. slipped in late trading Monday after the chip maker said “strong demand” for its products will send second-quarter results to the top end of a previous estimate.
After the close of stock markets, the Dallas-based company said it expects to post a profit of between 24 cents (U.S.) and 26 cents a share on sales in the range of $3.17-billion to $3.29-billion. In April, it forecast a profit between 23 cents and 26 cents with sales in a range of $3.09-billion to $3.33-billion.
The company said the news reflects “continuing strong demand across a broad range of its semiconductor products, as well as seasonal growth in its educational calculators.”
Analysts polled by Thomson First Call were calling for a profit of 25 cents a share on sales of $3.21-billion, according to a poll of analysts by Reuters Estimates.
Texas Instruments also raised projected semiconductor sales to a range of between $2.73-billion to $2.83-billion, and sensors and control sales to a range of between $285-million to $295-million.
Still, shares of Texas Instruments slipped 1.6 per cent to $25.80 in after-hours trading on the New York Stock Exchange. The stock rose 4.05 per cent to $26.23 in regular action, between its 52-week high of $33.98 and a low of $17.21.
TI's update is the latest spate of recent good news for the semiconductor industry. Last Thursday Santa Clara, Calif.-based Intel Corp., the world's biggest computer chip maker, provided an sunny picture of demand, saying that second-quarter sales are expected to come in at the high end of its earlier targets.
On that same day, Ottawa's Tundra Semiconductor Corp. posted record revenue and profit, with sales more than doubling from a year ago.
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