Gloomy forecast sends Texas Instruments stock tumbling
Texas Instruments Inc. gave a weaker-than-expected forecast and warned that trade tension is making customers far more cautious.
The chipmaker gave a weaker-than-expected forecast, shares down nearly 10%
Stocks impacted: Texas Instruments Inc. (TXN)
The company said it expects fourth-quarter earnings of 91 cents to $1.09 a share on revenue of $3.07 billion to $3.33 billion, down from $3.72 billion in the fourth quarter of 2018. In its gloomy estimates, the company cited the ongoing trade uncertainties with China and customers holding back purchases. The company reported third-quarter net income of $1.43 billion, or $1.49 a share, compared with $1.57 billion, or $1.58 a share, in the year-ago period. Revenue declined to $3.77 billion from $4.26 billion in the year-ago quarter, marking the fourth quarter in a row of declining revenue. After the announcement, Texas Instruments stock dipped nearly 10% after hours. Other chipmakers including Infineon, Dialog and STMicroelectronics also suffered losses.
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