Shares of Texas Instruments (TXN) are down 4% after the American microchip and semiconductor company issued forward guidance that missed Wall Street targets.
The forward guidance came as Texas Instruments issued fourth quarter 2023 earnings per share (EPS) of $1.49 U.S., which beat Wall Street’s consensus estimate of $1.47 U.S.
Revenue in the final quarter of last year came in at $4.08 billion U.S., which fell short of the $4.12 billion U.S. that analysts had expected.
The company provided forward guidance for the current first quarter that was below Wall Street forecasts, citing softness in the automotive and industrial sectors.
Specifically, Texas Instruments said that it anticipates $3.45 billion U.S. to $3.75 billion U.S. in revenue for the current first quarter of 2024, and $0.96 U.S. to $1.16 U.S. in EPS.
Analysts who cover the company had a consensus Q1 forecast of $4.05 billion U.S. in revenue and $1.40 U.S. a share in EPS, according to data from FactSet.
On an earnings call, management said that demand remains weak and that they expect customers to reduce their microchip inventories over the coming year.
Texas Instruments makes microchips that go into products in nearly every sector of the economy from motor vehicles to consumer electronics.
Prior to today (Jan. 24), the company’s stock had declined 2% over the past year to trade at $174.34 U.S. per share.