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By Aishwarya Venugopal
Oct 24 (Reuters) - Texas Instruments Inc’s quarterly revenue and profit beat estimates as the largest maker of analog semiconductors continues to benefit from a surge in demand for its chips from automotive and industrial companies.
The chipmaker’s stock, which have risen 32 percent this year, were down 1.8 percent in after hours trading on Tuesday.
“We could just be seeing a little bit of fatigue at this point in time. The stock has had a very tremendous run this year as well as strong run into earnings,” Loop Capital analyst Betsy Van Hees said.
The company, whose sensors are used in advanced driving systems, is cashing in on the latest trend of automakers developing self-driving vehicle technology.
“The company’s transformation to an automotive and industrial company continues to pay-off for them,” Van Hees said.
The Dallas, Texas-based company’s revenue from analog division, its largest, grew 16 percent, while the embedded processing unit rose 17 percent in the third quarter.
Texas Instruments’ analog chips are used to calculate changes in sound and temperature and also makes chips for Internet of Things devices that allows everyday gadgets to connect with the internet.
The company forecast current-quarter profit of $1.01 to $1.15 per share and revenue of $3.57 billion to $3.87 billion.
Analysts on an average were expecting profit of $1.01 per share and revenue of $3.66 billion for the current quarter, according to Thomson Reuters I/B/E/S.
The company said net income rose to $1.29 billion, or $1.26 per share, in the third quarter ended Sept. 30, from $1.02 billion, or 98 cents per share, a year earlier.
Analysts on an average were expecting earnings of $1.12 per share.
The company’s net revenue rose 12 percent, a sixth straight quarter of rise, to $4.12 billion, beating the average analysts’ estimate of $3.91 billion.
Reporting by Aishwarya Venugopal in Bengaluru; Editing by Shounak Dasgupta and Arun Koyyur