(Reuters) – Texas Instruments Inc (TXN.O) on Tuesday forecast current-quarter revenue and profit largely below Wall Street estimates after posting first-quarter results above expectations, as the chip industry braces for a big hit from the coronavirus outbreak.
The Dallas, Texas-based company, the first big chipmaker to report in the current earnings cycle, forecast earnings of 64 cents per share to $1.04 per share, on revenue of between $2.61 billion and $3.19 billion.
Analysts were expecting earnings of 99 cents per share, on revenue of $3.15 billion, according to IBES data from Refinitiv.
“With a COVID-19 recession likely upon us, and with reduced visibility of customer demand, we are using the 2008 financial crisis to model our second-quarter outlook,” Chief Executive Officer Rich Templeton said in a statement.
A host of chipmakers have either cut or pulled their sales outlook due to demand and supply disruptions caused by the coronavirus outbreak.
On a per-share basis, the company earned $1.24, beating expectations of $1. Revenue for the first quarter ended March 31 fell 7% to $3.33 billion, but beat estimates of $3.17 billion.
Shares of the company were up 3% in extended trading.
Reporting by Munsif Vengattil and Supantha Mukherjee in Bengaluru; Editing by Devika Syamnath