Analog chip maker Texas Instruments Incorporated (TXN) said in a statement on Thursday that it is raising the lower end of its sales and profit forecast for the first quarter due to an increase in customer orders.
The Dallas-based company said it now expects earnings to be between 28 cents and 32 cents per share in the first quarter, with sales between $2.8 billion and $2.91 billion. Previously, the company projected earnings between 24 cents and 32 cents per share on sales of $2.69 billion to $2.91 billion.
According to Bloomberg, analysts expect TXN to earn 29 cents per share on $2.81 billion in sales in the first quarter.
Last year, many Texas Instrument customers ran low on their inventories of chips as demand for electronics was higher than previously expected. To ensure this does not happen again, the customers have increased order rates, ultimately benefiting Texas Instrument’s bottom line.
Texas Instruments shares were inactive during pre-market trading on Friday. The stock is up +7.25% over the past twelve months.
The Bottom Line
Shares of Texas Instruments (TXN) have a dividend yield of 3.18% based on last night’s closing price of $35.20 and the company’s annualized dividend payout of $1.12 per share.
Texas Instruments Incorporated (TXN) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.