Texas Instruments reported a drop in profit amid lower revenue in the last quarter of 2023 and guided for another drop in profit to start the new year.
Texas Instruments shares slipped 4% on the news.
The chip maker on Tuesday posted a fourth-quarter net profit of $1.37 billion, or $1.49 a share, compared with $1.96 billion, or $2.13 a share, for the same period a year earlier. Analysts polled by FactSet had forecast a profit of $1.35 billion, or $1.47 a share.
Revenue dropped 13% to $4.08 billion, missing analysts expectations of $4.12 billion, according to FactSet.
The company is seeing increasing weakness across industrial and a sequential decline in automotive, Chief Executive Haviv Ilan said, as the company guided for a significant drop in earnings per share and revenue.
For the first quarter, Texas Instruments forecasts earnings per share to drop to 96 cents to $1.16 cents, down from reported earnings per share of $1.85 for the same period a year earlier. It also expects revenue of $3.45 billion to $3.75 billion, down from $4.38 billion last year.
