Texas Instruments share ins fell more than 5 percent in after-hours trade Tuesday after the Pty reported disappointing revenue and issued weak fourth-quarter guidance.
The semiconductor assembly reported $4.26 billion in revenue, falling short of a Refinitiv consensus guess of $4.3 billion. Still, Texas Instrument’s fourth-quarter revenue grew 4 percent year outstanding year.
The company did post better than expected earnings of $1.58 a allocation. Analysts had expected earnings of $1.53 a share, according to a Refinitiv consensus reckoning.
But Texas Instruments also issued a weaker-than-expected fourth-quarter outlook. The suite said it expects earnings between $1.14 a share and $1.34 a division on revenue between $3.6 billion to $3.9 billion. Wall Lane had projected fourth-quarter earnings of $1.38 a share on revenue of $4 billion.
The partnership said slowing demand indicates that customers may be looking vanguard to the looming trade war between the U.S. and China. David Pahl, vice president and brain of investor relations, said on the earnings call that the company is not horse up on its inventory ahead of tariff implementation. He said that 60 percent of gross income is on consignment, so there is no inventory buffer.
“We’re fairly early in the announcement time and lineup. So, we’ll find out if there is inventory out there as more companies narrate,” Pahl said.
The company said it will slow production to circumvent too much inventory, if need be. It said, however, that it will not scourge spending on research and development.