SAN FRANCISCO – Texas Instruments Inc. (TXN), the world's largest maker of chips for cell phones, Monday said broad demand for its semiconductor products would boost its earnings to the higher end of its previous outlook.
The Dallas-based company also narrowed the range of its revenue expectations. TI said it now expected second-quarter earnings of 24 cents to 26 cents per share on revenue of $3.17 billion to $3.29 billion billion. Wall Street, however, was generally expecting a more optimistic outlook, and TI shares slipped in after-hours trade after rising more than 4 percent in regular trading.
"People expected a very strong quarter," said Wedbush Morgan Securities analyst David Wu. "People expected them (not to change) the high end and raise the low end."
In April, the company said it expected second-quarter earnings of 23 cents to 26 cents a share on revenue of $3.09 billion to $3.33 billion. Wall Street on average was expecting a profit of 25 cents a share on revenue of $3.23 billion, according to a poll of analysts by Reuters Estimates.
Texas Instruments said it was also helped by seasonal demand for its educational calculators.
Earlier Monday, Texas Instruments said it had won an order to provide digital imaging processors to Samsung Electronics Co. (search) , which will enable newer cell phones to sport more advanced still camera and video functions. Analysts said the deal represented a good step toward reducing the company's reliance on Nokia (NOK).
"Samsung happens to be a market share gainer at the expense of Nokia," Wu said.
Shares of Texas Instruments slipped to $25.84 after hours on the INET electronic brokerage system after rising 4 percent to close at $26.23 in regular trade on the New York Stock Exchange (search).