Investing.com -- Texas Instruments (NASDAQ:TXN) reported Tuesday first-quarter results that topped analysts' expectations, and the chipmaker delivered current-quarter guidance that met estimates despite a weaker backdrop for chip demand.
Texas Instruments shares are trading about 2% higher in premarket Wednesday following the report.
Texas Instruments announced earnings per share of $1.85 on revenue of $4.38 billion. Analysts polled by Investing.com anticipated EPS of $1.77 on revenue of $4.37B.
Analog revenue, which makes up the bulk of overall revenue, decreased 14% year-on-year in the quarter, while embedded processing gained 6%.
"During the quarter we experienced weakness across our end markets with the exception of automotive, as expected," the company said.
Looking ahead, Texas Instruments guided second-quarter EPS in the range of $1.62 per share to $1.88 per share, and revenue between $4.17B and $4.53B. That compared with estimates for earnings of $1.83 a share on revenue of $4.44B.
Stifel analysts reiterated a Hold rating, citing "limited FCF expansion."
Rosenblatt analysts said the results were pretty much as expected.
"2Q23 outlook of slight flat-to-down q/q growth is inline to our expectations and along with management commentary we believe supports a 2Q23 bottom as markets, inventories, and customer engagement "visibility" remains solid."
(Additional reporting by Senad Karaahmetovic)