(Reuters) -Analog chipmaker Texas Instruments forecast fourth-quarter revenue and profit below estimates on Tuesday, as demand suffers across its key markets including industrial as vendors pull back on orders amid sluggish economic growth.
Shares of the Dallas, Texas-based company fell 4.3% in trading after the bell.
Broader demand from the industrial market – Texas Instruments’ biggest by revenue share – has worsened.
The so-far resilient automotive sector has also started showing cracks, and the United Auto Workers strike could amplify concerns that chip demand from that sector would curtail sooner-than-expected, analysts said.
Elevated borrowing costs for a prolonged period has dented end-user demand for vehicles, while bleak demand trends across sectors in China have also weighed on chipmakers. China is a key market for Texas Instruments, with about 25% of its revenue coming from companies headquartered there.
The company forecast current-quarter revenue between $3.93 billion and $4.27 billion, compared with analysts’ average estimates of $4.49 billion, according to LSEG data.
The company forecast current-quarter profit per share between $1.35 and $1.57, compared to analysts’ estimate of $1.76 per share.
Revenue in the quarter ended Sept. 30 fell 14% to $4.53 billion, compared with estimates of $4.58 billion.
Excluding items, the company posted profit per share of $1.85, compared with estimates of $1.82. Earnings per share included a 5-cent benefit for items that were not in the company’s original guidance, TI said.
(Reporting by Chavi Mehta in Bengaluru; Editing by Shailesh Kuber)
