NEW YORK (TheStreet) -- Texas Instruments (TXN) comfortably beat Wall Street's estimates in its third-quarter results, released after market close on Monday, although weak outlook weighed on the company's shares.
The semiconductor specialist reported revenue of $3.24 billion, down from $3.39 billion in the prior year's quarter, but above Wall Street's estimate of $3.23 billion.
Excluding items, Texas Instruments earned 56 cents a share, down from 67 cents a share in the same period last year, but above the consensus estimate of 53 cents a share.
For the fourth quarter, the Plano, Texas-based firm expects sales between $2.86 billion and $3.1 billion and earnings between 42 cents and 50 cents a share. Analysts surveyed by Thomson Reuters are looking for fourth-quarter sales of $3.12 billion and earnings of 51 cents a share.
Investors were underwhelmed by the company's guidance, pushing Texas Instruments shares down 3.2% to $39.68 in extended trading.
Nonetheless, the company continues to shift its focus onto its lucrative analog and embedded processing products, away from its legacy wireless offerings.
"Our third-quarter performance reflects the positive structural changes we've made at TI over the past few years as we've focused on Analog and Embedded Processing," wrote Rich Templeton, the Texas Instruments CEO, in a statement.
Analog and embedded processing technology now accounts for 80% of Texas Instruments' revenue, eight points higher than a year ago. The firm's legacy wireless products declined to less than 2% of revenue during the third quarter.
Overall, the company's revenue was up 6% sequentially. Excluding Texas Instruments' wireless legacy products, it grew 10%.