Texas Instruments Q1 Profit Down - Update

(RTTNews) - Analog chip maker Texas Instruments Inc. (TXN), Tuesday reported a 11 percent drop in profit for the first quarter, driven largely by lower revenues. However, both earnings and revenues for the quarter trumped analysts' expectations.

Dallas, Texas-based Texas Instrument's profit for the first quarter rose to $1.22 billion or $1.26 per share from $1.37 billion or $1.35 per share last year. Analysts polled by Thomson Reuters expected the company to earn $1.13 per share.

Revenues for the quarter dropped 5 percent to $3.59 billion from $3.79 billion in the same quarter last year. Analysts had a consensus revenue estimate of $3.50 billion for the quarter.

"Revenue decreased 5% from the same quarter a year ago as demand for our products continued to slow across most markets. In our core businesses, Analog revenue declined 2% and Embedded Processing declined 14% from the same quarter a year ago," said CEO Rich Templeton.

Looking forward to the second quarter, Texas Instrument's expects earnings of $1.12 to $1.32 per share and revenues of $3.46 billion to $3.74 billion. Analysts currently estimate earnings of $1.24 per share and revenues of $3.69 billion.

TXN closed Tuesday's trading at $116.38, up $1.43 or 1.24% on the NYSE. The stock, however, slipped $2.78 or 2.39% in the after-hours trading.