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UPDATE 1-Texas Instruments' quarterly revenue beats estimates
April 25, 2017 / 8:51 PM / 8 months ago

UPDATE 1-Texas Instruments' quarterly revenue beats estimates

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April 25 (Reuters) - Chipmaker Texas Instruments Inc reported a higher-than-expected 13.1 percent increase in quarterly revenue on Tuesday, helped by demand from its automotive and industrial customers.

The company, which counts Apple Inc among its largest customers, forecast second-quarter profit of 89 cents-$1.01 per share and revenue of $3.40 billion-$3.70 billion.

Analysts on average were expecting a profit of 91 cents per share and revenue of $3.50 billion, according to Thomson Reuters I/B/E/S.

The Dallas-based company, considered a bellwether for the semiconductor industry, manufactures analog chips that are used to calculate changes in sound and temperature, while its embedded chip unit manufactures processors used in Internet of Things and personal devices.

It also makes sensors that are used in advanced driving systems in vehicles, as well as chips that are used in infotainment systems and powertrains.

Automotive products have contributed a larger share of the company’s revenue in the last few years. The segment generated about 18 percent of the company’s revenue in 2016, up from 13 percent in 2014.

Net income increased to $997 million, or 97 cents per share in the quarter, from $711 million, or 69 cents per share, in the year-earlier period.

On an adjusted basis, the company earned 85 cents per share, beating analysts’ average estimate of 83 cents per share, according to Thomson Reuters I/B/E/S.

The company’s revenue rose to $3.40 billion in the first quarter ended March 31, from $3.01 billion a year earlier.

Analysts on average had expected revenue of $3.30 billion.

Texas Instruments’ shares were little changed in aftermarket trading on Tuesday.

Through Tuesday’s close, the company’s shares have risen about 12.9 percent since the start of the year, marginally outperforming the 12.3 percent rise in the broader Philadelphia Semiconductor index. (Reporting by Narottam Medhora in Bengaluru; Editing by Martina D‘Couto)

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