Texas Instruments forecasts revenue above estimates; shares rise 3%

(Reuters) – Texas Instruments Inc forecast third-quarter revenue above Wall Street estimates on Tuesday, offering some hope to the chip industry reeling from disruptions caused by the coronavirus pandemic.

Shares of the company, which also beat second-quarter revenue and profit estimates, were up more than 3% in extended trading.

As TI supplies chips for everything from smart phones to automobiles and often reports earnings before other chipmakers, investors watch its results closely as a proxy for both the health of the chip industry and other sectors where semiconductors are key components.

TI said it expects current-quarter revenue in a range of $3.26 billion to $3.54 billion, above analysts’ expectations of $3.12 billion, according to IBES data from Refinitiv.

Net income rose to $1.38 billion, or $1.48 per share, in the quarter ended June 30, from $1.31 billion, or $1.36 per share, a year earlier.

Total revenue fell about 12% to $3.24 billion, but came in above estimates of $2.94 billion.

(Reporting by Munsif Vengattil in Bengaluru; Editing by Maju Samuel)