Texas Instruments Q1 revenue misses estimates
Shares of Texas Instruments (TXN) fell in after-hours trading after reporting first-quarter revenue that missed Wall Street estimates. The semiconductor company has pointed to increasing weakness in industrial and auto chip demand.
Yahoo Finance's Julie Hyman and Josh Lipton break down these numbers and take a closer look at the challenges the company is facing.
For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.
Editor's note: This article was written by Eyek Ntekim
Video Transcript
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JULIE HYMAN: Let's take a look at what's trending after hours. So we're talking Texas Instruments. The company's numbers missing, in particular revenue estimates in the fourth quarter. The first quarter forecast coming in lower than Wall Street estimates as well.
Texas Instruments, the largest maker of analog semiconductors. Now, these are the simplest type of semiconductors. But TI also has the biggest range of customers because its semis go into so much different stuff. And the company saying on its conference call that the industrial market in particular has worsened here and that the outlook is showing a weak environment. That's reflected in that forecast for first quarter revenue.
JOSH LIPTON: Yeah, as you said, I mean folks really kind of watch this name because its chips go into all these different verticals. So its autos, it's industrials, it's consumer electronics. And so they kind of look to TXN as-- the Texas Instruments as kind of a possible read into the health of those end markets.
And that's I think the money line here from the CEO, "During the quarter, we experienced increasing weakness across industrial and a sequential decline in automotive." The stock had a nice pop heading into this print since early November, but [INAUDIBLE] sell off here in the after hours and basically has gone nowhere in the past 12 months, Julie.
JULIE HYMAN: Yeah, nowhere in sharp contrast to what we have seen from semiconductors more broadly. I mean, the Philadelphia Semiconductor Index was up something like 65% last year. TI was up 3%.
JOSH LIPTON: Yup. Yup.
JULIE HYMAN: So it's--
JOSH LIPTON: Investors sniffing that now.
JULIE HYMAN: --it's been underwhelming and underperforming for a little while here. And it looks like there's nothing in this report at least at first blush that is making investors change their tune.
JOSH LIPTON: For sure.
