Texas Instruments Tops Estimates, Uses 2008 Crisis to Model 2nd-Quarter Guidance

Texas Instruments' first-quarter results beat analysts' estimates, and amid the coronavirus pandemic, the chipmaking icon used the 2008 financial crisis to model its second-quarter guidance.
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Texas Instruments  (TXN) - Get Report shares rose after hours Tuesday after the chipmaker reported first-quarter top- and bottom-line results that topped estimates. 

And amid the uncertainty caused by the covid-19 pandemic, TI used its 2008 financial crisis to model its second-quarter outlook. 

The Dallas company in the first quarter earned $1.24 a share, including a 10-cent benefit from items that weren't in its guidance, as revenue fell 7% to $3.33 billion.

Analysts were expecting the company to report earnings of $1 a share on revenue of $3.17 billion. 

The company's embedded processing unit saw revenue decline 18% year over year while analog revenue fell 2%. The embedded processing unit includes processors and connected microcontrollers. 

"With a covid-19 recession likely upon us, and with reduced visibility of customer demand, we are using the 2008 financial crisis to model our second-quarter outlook," Chief Executive Rich Templeton said in a statement. 

"To reflect the increased uncertainty, we have expanded the range of our guidance."   

Texas Instruments expects second-quarter earnings between 64 cents and $1.04 a share on revenue between $2.61 billion and $3.19 billion. Analysts are expecting earnings of 99 cents per share on revenue of $3.15 billion.

Texas Instruments shares at last check rose 2.3% to $109.26.