Chip sector giant Texas Instruments (NASDAQ:TXN) reported a decline in earnings for its third quarter late yesterday, with a gloomy outlook.
Profits fell to $601 million, or $0.51 per share, from $859 million, or $0.71 per share, in last year's third quarter.
Earnings per share would have been just ahead of analyst expectations excluding $0.09 in charges related to the company's acquisition of National Semiconductor.
Revenue dipped 7%, to $3.47 billion, also ahead of analyst expectations.
But, Texas Instruments is looking for the fourth quarter to be below the seasonal average just as the third quarter was, as it said uncertainty continues to weigh on demand in almost every major market segment.
It sees earnings per share of $0.28 to $0.36 in the fourth quarter, on revenue of $3.26 billion to $3.54 billion, below analyst expectations.
Texas Instruments shares are trading down about 2% Tuesday.
Texas Instruments is the #2 holding in the Semiconductor HOLDRS Fund (NYSE:SMH), trading down 1.3% today, and is the top holding in the iShares S&P North American Technology-Semiconductors Index Fund (IGW), trading up over .7% today.
It is the #2 holding in the iShares PHLX SOX Semiconductor Sector Index Fund (NASDAQ:SOXX), trading down 1.4% Tuesday.
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