Texas Instruments, the chip maker, has reported a decline in profit for the last quarter of 2023, along with lower revenue. The company also guided for another drop in profit as it enters the new year.
Financial Performance
In the fourth quarter, Texas Instruments recorded a net profit of $1.37 billion, or $1.49 per share. This is compared to $1.96 billion, or $2.13 per share, in the same period the previous year. Analysts surveyed by FactSet had predicted a profit of $1.35 billion, or $1.47 per share.
Revenue Decline
Revenue for the quarter dropped by 13% to $4.08 billion, falling short of analysts’ expectations of $4.12 billion, according to FactSet.
Weakening Sectors
Chief Executive Haviv Ilan highlighted increasing weakness in industrial sectors and a sequential decline in automotive. As a result, the company expects a significant drop in both earnings per share and revenue going forward.
Outlook for Q1 2024
For the first quarter of 2024, Texas Instruments forecasts earnings per share to range from 96 cents to $1.16, a decrease from the reported earnings per share of $1.85 in the same period the previous year. Additionally, the company expects revenue to range from $3.45 billion to $3.75 billion, down from $4.38 billion last year.
