TI profit beats points to China automotive chip rebound as industrial weakness persists
Rewrites throughout
Shares of TI up 4% after Q3 profit beat
Analog chip demand recovers, driven by smartphone and PC providers
Automotive market revenue rises due to growth in China's EV sector
Industrial market weakness persists, impacting Q4 revenue forecast
By Arsheeya Bajwa
Oct 22 (Reuters) -Texas Instruments TXN.O beat third-quarter profit estimates on Tuesday, helped by a recovery in orders for its analog chips across segments and improving demand from China's automotive market, sending its shares up 4% in extended trading.
Sales of TI's semiconductors, which help power electronic devices, have been bolstered by improving orders from smartphone and PC providers, supported by a rebound in end-market demand.
Revenue from the automotive market also rose upper-single-digits sequentially, CEO Haviv Ilan said on a post-earnings call.
"There is momentum for EVs in China, our content is growing there, and that's what really drove the growth in the third quarter," Ilan said. However, some weakness is expected to persist in the remainder of the automotive market, he said.
The company recorded earnings of $1.47 per share for the three months ended Sept. 30, above estimates of $1.37, according to estimates compiled by LSEG.
Third-quarter revenue dropped 8% to $4.15 billion, the smallest decline in seven quarters.
"Bottom line, TI now sees cyclical recovery in the non-industrial end markets and expects the automotive market to continue to grow, driven by EV adoption in spite of the mixed demand from the non-Chinese auto OEMs," said Summit Insights analyst Kinngai Chan.
The results are closely watched as an indicator of demand across sectors since the company's chips find widespread application. It is also the first major U.S. chipmaker to report results for the September quarter.
INDUSTRIAL SORE SPOT
TI forecast fourth-quarter revenue and profit below estimates due to ongoing weakness in the industrial market as customers struggle to clear existing inventory.
The industrial segment, which utilizes chips for tasks such as automating factories, declined sequentially in the third quarter while all other end markets grew compared to the previous three-month period, the company said.
The company forecast revenue in the range of $3.70 billion to $4.0 billion, below analysts' average estimate of $4.07 billion.
Reporting by Arsheeya Bajwa in Bengaluru; Editing by Sriraj Kalluvila and Alan Barona
Mga Kaugnay na Asset
Pinakabagong Balita
Disclaimer: Ang mga kabilang sa XM Group ay nagbibigay lang ng serbisyo sa pagpapatupad at pag-access sa aming Online Trading Facility, kung saan pinapahintulutan nito ang pagtingin at/o paggamit sa nilalaman na makikita sa website o sa pamamagitan nito, at walang layuning palitan o palawigin ito, at hindi din ito papalitan o papalawigin. Ang naturang pag-access at paggamit ay palaging alinsunod sa: (i) Mga Tuntunin at Kundisyon; (ii) Mga Babala sa Risk; at (iii) Kabuuang Disclaimer. Kaya naman ang naturang nilalaman ay ituturing na pangkalahatang impormasyon lamang. Mangyaring isaalang-alang na ang mga nilalaman ng aming Online Trading Facility ay hindi paglikom, o alok, para magsagawa ng anumang transaksyon sa mga pinansyal na market. Ang pag-trade sa alinmang pinansyal na market ay nagtataglay ng mataas na lebel ng risk sa iyong kapital.
Lahat ng materyales na nakalathala sa aming Online Trading Facility ay nakalaan para sa layuning edukasyonal/pang-impormasyon lamang at hindi naglalaman – at hindi dapat ituring bilang naglalaman – ng payo at rekomendasyon na pangpinansyal, tungkol sa buwis sa pag-i-invest, o pang-trade, o tala ng aming presyo sa pag-trade, o alok para sa, o paglikom ng, transaksyon sa alinmang pinansyal na instrument o hindi ginustong pinansyal na promosyon.
Sa anumang nilalaman na galing sa ikatlong partido, pati na ang mga nilalaman na inihanda ng XM, ang mga naturang opinyon, balita, pananaliksik, pag-analisa, presyo, ibang impormasyon o link sa ibang mga site na makikita sa website na ito ay ibibigay tulad ng nandoon, bilang pangkalahatang komentaryo sa market at hindi ito nagtataglay ng payo sa pag-i-invest. Kung ang alinmang nilalaman nito ay itinuring bilang pananaliksik sa pag-i-invest, kailangan mong isaalang-alang at tanggapin na hindi ito inilaan at inihanda alinsunod sa mga legal na pangangailangan na idinisenyo para maisulong ang pagsasarili ng pananaliksik sa pag-i-invest, at dahil dito ituturing ito na komunikasyon sa marketing sa ilalim ng mga kaugnay na batas at regulasyon. Mangyaring siguruhin na nabasa at naintindihan mo ang aming Notipikasyon sa Hindi Independyenteng Pananaliksik sa Pag-i-invest at Babala sa Risk na may kinalaman sa impormasyong nakalagay sa itaas, na maa-access dito.
