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TI disappoints with weak outlook on falling sales

TI disappoints with weak outlook on falling sales

Business news |
By Peter Clarke

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Texas Instruments’ share price dropped 5 percent after announced declining sales in its 4Q24 financial results and forecast a further decline in its 1Q25.

The analog chip company achieved revenues of US$4.01 billion in 4Q24, down 3.5 sequentially and down 1.7 percent compared with 4Q23. The company made a health net income of US$1.20 billion on that revenue but a drop for a year previously

The company forecast 1Q25 revenue of between US$3.74 billion and US$4.06 billion. At the mid-point of US$3.90 this would mark an annual jump from US$3.66 billion recorded in 1Q24. However, the fact that it would be yet another sequential decline, of about 3 percent caused analysts to mark the stock down.

For the full year 2024 Texas Instruments made a net profit of US$3.74 billion on revenue of US$15.64 billion, down 10.7 percent compared with 2023.

As a percentage of revenue for 2024, industrial was 34 percent; automotive, 35 percent; personal electronics, 20 percent; enterprise systems, 5 percent; communication equipment, 4 percent; and other was 2 percent.

While there was growth to be found in some sectors, such as Chinese automotive, TI’s exposure to automotive more broadly and industrial continued to show that the recovery there is slow.

Haviv Ilan, CEO of TI, spoke of sequential performance saying: “First, the industrial market was down low-single digits. The automotive market was down mid-single digits. Personal electronics grew mid-single digits. Next, enterprise systems declined low-single digits. And lastly, communication equipment grew upper-single digits.” Ilan added: “Industrial automation and energy infrastructure still haven’t found the bottom.”

Related links and articles:

www.ti.com

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