Texas Instruments, the world's Number 1 maker of computer chips for mobile phones, fell steadily in early trading today after its fourth quarter earnings missed estimates and the company said its first-quarter revenues would be weaker.
Texas Instruments' stock on the New York Stock Exchange fell by 9 percent to $44, after it stood at $45.75 in pre-open trade, down from yesterday's close of $48.55. Shares have fallen steadily from an all-time high of $99.75 in March, to recent levels between $40 and $55.
The Dallas-based company said after markets closed yesterday that its revenue would decline about 10 percent in the first quarter, compared with the fourth quarter. Texas Instruments cited a glut of inventory for consumer electronics and communications infrastructure.
Analysts noted that Texas Instruments' performance was an indication of how the industry is faring.
"We believe that (Texas Instruments) is one of the best barometers for the handset market's health," said Thomas Weisel Partners analyst Mr Eric Ross.
SG Cowen in a report said the company's first quarter should be a low point, and predicted a recovery if the economic environment remains stable.
Reuters