Texas Instruments' CEO, Haviv Ilan, remarked that customers are currently digesting excess inventory, leading to a potential uptick in orders after eight consecutive quarters of declining revenue. Following the release of the third-quarter results, Ilan stated that the company's three main markets are showing signs of recovery, yet the primary revenue drivers—industrial and automotive chips—are still impacted by inventory surpluses. While optimism is in the air, Ilan indicated it is the right time for a rebound, although tangible evidence is yet to be seen.
This positive outlook caused a 3% rise in after-hours trading for the company's stock. For the fourth quarter, Texas Instruments forecasts revenue between $3.7 billion and $4 billion, slightly below analysts' average expectations of $4.08 billion. The projected earnings per share (EPS) range from $1.07 to $1.29, compared to an analysts' average estimate of $1.35. Year-to-date, Texas Instruments' stock has climbed by 14%, closing at $193.97 on the latest trading day.
During the third quarter, the company reported an 8.4% decline in revenue, which stood at $4.15 billion, marking the eighth straight quarter of shrinking revenues. This was just above analysts' expectations of $4.12 billion. The EPS was $1.47 per share, surpassing the anticipated $1.37 per share.
