Texas Instruments Second-Quarter Results Down

Texas Instruments (TXN) unveiled guidance for its fiscal third-quarter which was in line with analysts’ estimates after markets closed on Tuesday as it posted a drop in second-quarter earnings and revenue, which was attributed in part to declining sales from embedded processing business segment

The Dallas, Tx.-headquartered business — which manufactures semiconductors that are used in connected cars and self-monitoring health devices — generated revenue of $3.67 billion in the three months ended June 30, down 9% from the corresponding quarter of the prior year. This nevertheless surpassed the consensus estimate of analysts polled by Capital IQ for $3.60 billion.

Rich Templeton, chief executive of Texas Instruments, said that the fall in revenue had been “due to broad-based weakness.” In the company’s core businesses, Analog revenue declined 6% and Embedded Processing, which includes connected microcontrollers and processors, sales declined 16% from the same quarter a year ago.

Earnings per share — which included a 7-cent benefit for items that were not in the company’s original guidance — came in at $1.36, down 3% from $1.40 a year earlier. Analysts had expected $1.22 per share.

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