NEW YORK, March 7 Texas Instruments
raised its target for first-quarter earnings and revenue to the
upper end of its previous forecast range, implying improving
demand for its chips.
The maker of chips for a wide range of products ranging from
consumer electronics to industrial equipment said on Thursday it
now expects earnings per share of 28 cents to 32 cents, compared
with its previous target range of 24 cents to 32 cents and
implying a new midpoint of 30 cents compared with 28 cents.
It forecast revenue in a range of $2.80 billion to $2.91
billion, which compared with its January forecast for a range of
$2.69 billion to $2.91 billion.
The $2.855 billion midpoint of the updated revenue range was
above Wall Street expectations for $2.8 billion, according to
Thomson Reuters I/B/E/S.
Bernstein analyst Stacy Rasgon said it was not immediately
clear why TI was able to raise guidance but that its ability to
raise both revenue and earnings targets may indicate that demand
is improving in TI's core business.
"That could imply that the demand picture is better than
expected on a broad basis," Rasgon said, but noted that he was
waiting for the company to give more information on its
TI shares were largely unchanged in after hours trade after
closing at $35.20 in the regular Nasdaq session. The stock has
risen 5 percent since Jan. 22 as investors have been betting on
an improvement in demand for TI.