Shares of Texas Instruments (NASDAQ:TXN) fell more than 4% in after-hours trading Tuesday after the company reported Q4 revenue and guidance that missed analysts’ estimates.
The chipmaker posted fourth-quarter earnings per share (EPS) of $1.49, compared to $2.13 in the year-ago period. Revenue came in at $4.08 billion, down 13% year-over-year (YoY), and below the consensus estimates of $4.13 billion.
Analog revenue stood at $3.12 billion in the quarter, down 12% YoY and above the expected $3.07 billion. Texas Instruments generated $752 million in embedded processing revenue, down 10% YoY and considerably below the projected $828.6 million.
The company reported an operating profit of $1.53 billion, down 30% YoY, while analysts estimated $1.56 billion. Capital expenditure totaled $1.15 billion in the period, 19% higher than in the year-ago quarter, and just below the estimated $1.16 billion.
The semiconductor manufacturer reported $2.96 billion in cash and cash equivalents, down 2.8% from a year earlier. Analysts were expecting $2.33 billion.
For the current quarter, TXN expects EPS to be in the range of 96c to $1.16, well below the consensus estimates of $1.42. Revenue is projected to land between $3.45 billion and $3.75 billion, also missing Wall Street’s estimates of $4.09 billion.
"TI's first quarter outlook is for revenue in the range of $3.45 billion to $3.75 billion and earnings per share between $0.96 and $1.16. We now expect our 2024 effective tax rate to be about 13%,” Haviv Ilan, Texas Instruments’s president and CEO said.