By Yasin Ebrahim
Investing.com - Chipmaker Texas Instruments (NASDAQ:TXN) on Tuesday reported second-quarter earnings that topped analysts' expectations.
Texas Instruments shares gained 3.3% in after-hours trade following the report.
Texas Instruments announced earnings per share of $1.15 on revenue of $3.24B. Analysts polled by Investing.com anticipated EPS of $0.87 on revenue of $2.94B.
Texas Instruments shares are up 5% from the beginning of the year, still down 1.43% from its 52 week high of $137.50 set on July 21. They are outperforming the S&P Global (NYSE:SPGI) 100 which is up 3.23% from the start of the year.
Revenue decreased 12% from the same quarter a year ago, driven by weakness in the automotive market, the company said.
Analog revenue, which makes up the bulk of overall revenue, declined 4%, while embedded processing slipped 31%
Texas Instruments guided third-quarter revenue in the range of $3.26 billion to $3.54 billion, and earnings per share between $1.14 and $1.34.
"After Q1 boost in demand from customers building chip inventories amid the pandemic, Texas Instrument looks a bit vulnerable than other producers. But investors are looking beyond the pandemic at this point and are expecting strong guidance for the rest of the year. The management’s clear stance to boost share buybacks and dividends is another reason that’s making TI stock attractive for long-term investors," Investing.com analyst Harris Anwar said.
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