Texas Instruments Profit In Line

(RTTNews) - Texas Instruments Inc (TXN), the world's largest analog chip maker, Monday reported a 61 percent jump in fourth-quarter profit, led by growth in analog and embedded processing as well as one-time gains. Earnings were in line with Wall Street estimates, while revenues were above expectations.

The company provided its earnings outlook for the first quarter, the midpoint of which is currently indicated to miss Street estimates, while its revenue guidance appears buoyant.

Texas Instruments makes chips used in phones, telecommunications equipments and calculators, and its financial performance is sometimes seen as an indicator of demand across the economy. The company is the third largest maker of semiconductors worldwide after Intel and Samsung, and the second largest supplier of chips for cellular handsets after Qualcomm.

Texas Instruments, based in Dallas, Texas, reported fourth-quarter net income of $812 million or $0.76 per share, compared with $503 million or $0.46 per share last year.

Results for the quarter included a 5-cent benefit for the reinstatement in December 2014 of the federal research tax credit and a 2-cent benefit from gains on sales of assets.

Excluding items, adjusted earnings for the quarter were $0.69 per share. On average, 29 analysts polled by Thomson Reuters expected the company to earn $0.69 per share for the quarter.

Revenues for the quarter climbed 8 percent to $3.27 billion from $3.03 billion in the prior year. Thirty-one analysts had a consensus revenue estimate of $3.26 billion for the quarter.

Analog segment revenue for the quarter rose 14 percent year-over-year, and embedded processing segment revenue gained 11 percent. Other revenue slid 14 percent.

For the first quarter, the company expects earnings of $0.57 to $0.67 per share and revenue of $3.07 billion to $3.33 billion. Analysts currently expect earnings of $0.63 per share on revenue of $3.19 billion.

TXN closed Monday at $55.05, down $0.01 or 0.02%, on a volume of 6 million shares on the Nasdaq. In after hours, the stock dropped $0.29 or 0.53% at $54.76.