Texas Instruments Inc (NYSE:TXN) posted an underwhelming 3Q performance as demand waned across its core markets, particularly in the industrial sector.
That led to the analog chipmaker forecasting 4Q revenue and profit forecast below Wall Street estimates.
During 3Q, the firm reported revenue of $4.53 billion, net income of $1.71 billion and earnings per share of $1.85, all of which came in below expectations.
The industrial market, which holds the lion's share of Texas Instruments' revenue, has been facing a steep decline in demand. Simultaneously, the automotive sector, once considered resilient, is beginning to exhibit vulnerabilities.
Analysts have raised concerns that the ongoing United Auto Workers strike may exacerbate worries about a sooner-than-expected downturn in chip demand from the automotive sector.
Texas Instruments now anticipates 4Q revenue in the range of $3.93 billion to $4.27 billion, a significant deviation from analysts' average estimates of $4.49 billion, as reported by LSEG data.
Likewise, the company expects a profit per share in the range of $1.35 to $1.57 for the current quarter, falling short of analysts' estimate of $1.76 per share.
Shares of Texas Instruments dropped 4.8% immediately following the release of its results. Over the last three months, the company's stock has fallen by 17.6%, and over the last year, it is down by 9.4%.