DALLAS (dpa-AFX) - Texas Instruments Inc. (TXN), the world's largest maker of analog chips, said Monday after the markets closed that its second quarter profit rose 3% from last year, as revenue increased 8%.
The company's quarterly earnings per share also came in above analysts' expectations as did its quarterly revenue. At the same time, the company gave an upbeat outlook for the third quarter.
Rich Templeton, TI's chairman, president and CEO,asid, 'Revenue for the quarter came in just above the middle of our expected range and earnings were near the top of the range, marking another quarter of solid execution.'
TI shares are currently losing 0.90% in after hours trading after closing the day's regular trading session at $49.17, up 35 cents. The shares trade in a 52-week range of $37.22 to $49.77.
Texas Instruments makes chips used in phones, telecommunications equipments and calculators, making the company's earnings an indicator of demand across the economy.
For the second quarter ended June 30, 2014, the Dallas, Texas-based company reported net income of $683 million or $0.62 per share, compared to $660 million or $0.58 per share for the year-ago quarter.
On average, 33 analysts polled by Thomson Reuters expected the company to earn $0.59 per share for the second quarter.
Gross margin for the quarter improved to a record 57.1% from 51.5% a year ago, while operating margin increased to 29.8% from 29.7% last year.
Revenue for the second quarter rose 8% to $3.29 billion from $3.05 billion in the same quarter last year. Thirty-four analysts had a consensus revenue estimate of $3.27 billion for the second quarter.
Analog segment revenue for the quarter increased 14% to $2.0 billion, while embedded processing segment revenue also grew 14% to $703 million.
Looking forward to the third quarter, the company forecasts revenue of $3.31 billion to $3.59 billion and earnings of $0.66 to $0.76 per share. Analysts currently expect the company to earn $0.68 per share on revenue of $3.44 billion for the third quarter.
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