Texas Instruments Inc. shares surged in the extended session Tuesday after the company topped its own and Wall Street’s expectations as it kicked off earnings season for U.S. chip makers.
Texas Instruments
TXN
shares rallied 5% after hours, following a 2.5% decline in the regular session to close at $173.96.
The company posted fourth-quarter net income of $2.14 billion, or $2.27 a share, compared with $1.69 billion, or $1.80 a share, in the year-ago period. Revenue rose to $4.83 billion from $4.08 billion in the year-ago quarter.
Analysts surveyed by FactSet had forecast earnings of $1.95 a share on revenue of $4.43 billion, based on the company’s outlook of $1.83 to $2.07 a share on revenue of $4.22 billion to $4.58 billion.
Sales of analog electronics, which convert real-world data such as sound or temperature into digital data, rose 20% to $3.76 billion from the year-ago period, while analysts had forecast $3.5 billion. Sales of embedded processors, which take that digital data and use it to perform specific tasks, rose 6% to $764 million, with analysts expecting $698.5 million.
Texas Instruments said it expects first-quarter earnings of $2.01 and $2.29 a share on revenue of $4.5 billion to $4.9 billion, while analysts on average had forecast earnings of $1.87 a share on revenue of $4.37 billion.
Over the past 12 months, Texas Instruments’ stock price has advanced 0.6%. In comparison, the S&P 500 index
SPX
is up 13%, the tech-heavy Nasdaq Composite Index
COMP
has slipped 0.7%, while the PHLX Semiconductor Index
SOX
has risen 8.8% over that time.
