Texas Instruments cuts fourth quarter earnings
NEW YORK (Reuters) - Texas Instruments Inc (TXN.N) slashed its earnings and revenue outlook for the fourth quarter on Monday, as demand fell for its chips, which are used in everything from cell phones to industrial equipment.
The company, which had already disappointed investors with its expectations announced in October, cut its forecast after its biggest customer Nokia (NOK1V.HE) had issued two warnings about cell phone demand in three weeks.
TI cut its earnings per share forecast to a range of 10 cents to 16 cents, from its earlier target of 30 cents to 36 cents, issued on Oct 20.
It now expects fourth quarter revenue of $2.3 billion to $2.5 billion, down from its earlier target of $2.83 billion to $3.07 billion and average analyst expectations for $2.89 billion, according to Reuters Estimates.
Analysts had feared a weak outlook from TI after cell phone leader Nokia had warned of decreasing global demand for mobile phones and rival chip makers STMicroelectronics (STM.PA) and Infineon Technologies (IFXGn.DE) also cut their targets.
TI shares closed up 26 cents at $14.82 on New York Stock Exchange.
(Reporting by Sinead Carew; editing by Richard Chang)
