By Noel Randewich
SAN FRANCISCO Dec 9 Chipmaker Texas Instruments
Inc narrowed its fourth-quarter forecast on Monday
following concerns on Wall Street that demand was not improving
as much as previously expected.
The company, seen as a barometer of the chip industry
because it makes components for a variety of markets, said in a
statement that it now estimates earnings of 44 cents to 48 cents
per share on revenue of $2.92 billion to $3.04 billion for the
quarter ending in December.
Texas Instruments previously estimated earnings per share of
42 to 50 cents on revenue of $2.86 billion to $3.10 billion for
the December quarter.
Analysts had expected fourth-quarter revenue of $2.988
billion and earnings at 46 cents per share, according to Thomson
"The quarter really is tracking consistently with our
expectations, at a company level as well as within major product
lines," investor relations senior executive Ron Slaymaker said
on a conference call with analysts on Monday.
Texas Instruments' previous fourth-quarter forecast, given
in October, was less than expected by analysts and underscored
concerns about spotty demand for chips for cars, appliances,
computers and industrial products.
The Dallas-based company has been among several U.S.
chipmakers in recent months to give forecasts that disappointed
investors expecting a stronger recovery. While the world economy
remains soft, buyers see little reason to put in new orders to
build up inventories of chips for use in cars, equipment,
laptops and smartphones, analysts say.
"There isn't an inventory excess or an inventory depletion,"
said Williams Financial analyst Cody Acree. "That has been a bit
of an adjustment given that some chip companies and investors
had set the tone for more optimism."
Shares of Texas Instruments dipped 0.25 percent in extended
trading after closing up 0.21 percent at $43.58.