Texas Instruments 3rd-quarter profit rises 10 pct

NEW YORK (Reuters) - Texas Instruments Inc (TXN.N) posted a 10 percent gain in third-quarter earnings on Monday, but the mobile chipmaker forecast revenues below analysts' estimates, sparking a drop in its stock.

TI, which makes everything from calculators to chips for the latest televisions, forecast fourth-quarter revenue of $3.4 billion to $3.68 billion, compared with the average analyst view for revenue of $3.7 billion, according to Reuters Estimates.

Its shares fell 2.8 percent to $33.30 after the news.

Profit from continuing operations rose to $758 million, or 52 cents per share, from $686 million, or 45 cents a share.

But revenue fell to $3.66 billion from $3.76 billion in the year-ago period, when the result was boosted by excess ordering by customers. The ordering sparked an inventory glut that TI cleared this year.

On September 11, TI forecast earnings from continuing operations of 49 cents to 53 cents per share on revenue of $3.56 billion to $3.72 billion. Analysts were looking for earnings of 50 cents on revenue of $3.66 billion, according to Reuters Estimates.

TI forecast fourth-quarter earnings of 48 cents to 54 cents per share.

Analysts, on average, expected earnings before unusual items of 50 cents per share. It was not immediately clear if the figures were comparable.

TI shares are down about 4 percent since September on investor disappointment over the company's revenue outlook. Investors have also been worried about phone maker Nokia Oyj's (NOK1V.HE) decision to sign up new suppliers besides TI.