Texas Instruments (NASDAQ:TXN) reported better-than-expected second-quarter results, fueled by a recovery in its key industrial segment. However, a cautious third-quarter outlook prompted an 11% drop in the stock in after-hours trading.
Q2 revenue climbed 16% year-over-year to $4.45 billion, landing at the high end of the company’s guidance and surpassing analyst expectations of $4.35 billion. Earnings per share came in at $1.41.
The company noted a 9% sequential revenue gain, driven by a “continued broad recovery in industrial,” its largest end market. Net income for the quarter totaled $1.30 billion.
Looking ahead, Texas Instruments guided Q3 revenue in the range of $4.45 billion to $4.80 billion and EPS between $1.36 and $1.60. This compares with the Street forecast of $4.55 billion in revenue and $1.49 EPS, suggesting a cautious view on the pace of demand recovery.
