Texas Instruments Incorporated (TXN) - Get Report reported better-than-expected fourth-quarter results after the bell Tuesday, on strong demand in automotive, personal electronics and industrial sectors.
The company posted earnings of $1.80 a share on revenue of $4.1 billion.
Texas Instruments had been expected to report earnings of $1.34 a share, on sales of $3.6 billion, based on a FactSet survey of 28 analysts.
In the same period a year ago, the company posted earnings of $1.12 a share on sales of $3.4 billion. It reported net income of $1.4 billion.
The company had offered guidance of $1.20 - $1.40 a share on Oct. 21. Shares have risen 18.3% since then.
Texas Instruments CEO Rich Templeton said in a statement the 20% year-over-year revenue gain was "driven by strong demand in automotive, personal electronics and industrial markets."
High demand in the automotive sector has forced several manufacturers, including Ford, Toyota and Fiat, to temporarily halt vehicle production, the New York Times reported earlier this month. Automakers have to contend with an unexpected early resurgence in demand for their products. At the same time, sales of computer chips for laptop computers, and video game consoles are surging thanks to the stay-at-home orders affecting businesses and schools.
The company said it returned $6 billion to owners in 2020 through dividends and stock repurchases.
The company said it's looking for first-quarter revenue in the range of $3.79 billion to $4.11 billion and earnings per share between $1.44 and $1.66. It said it continues to forecast its 2021 annual operating tax rate to be about 14%.
Shares of Texas Instruments fell $2.97, or 1.73% to $168.50 in after-hours trading.