The stock of Texas Instruments is up 3% after the microchip developer raised its forward guidance on the back of strong second-quarter financial results.
The Dallas, Texas-based company reported earnings per share (EPS) of $1.22 U.S., which topped Wall Street’s consensus forecast of $1.17 U.S.
Revenue in the quarter totaled $3.82 billion U.S., which matched Wall Street expectations.
Texas Instruments also raised its revenue forecast range for the current third quarter of the year to $3.94 billion U.S. to $4.26 billion U.S.
That guidance was in line with consensus estimates that had called for $4.12 billion U.S. in Q3 revenue.
Texas Instruments sells foundational microchips that are found in nearly every sector of the economy, from vehicles and industrial components to consumer electronics and calculators.
On an earnings call, management said they are seeing growing demand for their chips in the industrial and automotive markets.
Texas Instruments is also getting a boost from the fact that its microchip manufacturing facilities are based in the U.S. rather than overseas, shielding it from geopolitical turmoil.
About three-quarters (75%) of Texas Instruments’ property, plants and equipment are situated inside the U.S.
Before today (July 24), Texas Instruments’ stock had risen 17% on the year and was trading at $198.29 U.S. per share.
