Texas Instruments said its third-quarter earnings and revenue would be worse than already low expectations as chip demand weakened on customers' worries about an economic slowdown.
TI, which had already warned in July of a modest quarter, said Thursday that demand had weakened further across "a wide range of products, markets and customers."
The company, which makes chips for products ranging from cellphones to cars, now expects quarterly earnings per share of 56 cents to 60 cents compared with its previous expectation for 55 cents to 65 cents.
It forecast revenue of $3.23 billion to $3.27 billion compared with its earlier target for $3.4 billion to $3.7 billion. The new forecasts missed Wall Street expectations for earnings of 59 cents per share on revenue of $3.5 billion, according to Thomson Reuters I/B/E/S.
"It's probably a bit lower than people were thinking," said MKM Partners analyst Daniel Berenbaum. "Demand is slow."
But TI shares fell just 5 cents to $25.75 in extended trading after closing at $25.80 on the New York Stock Exchange. Investors had been expecting bad news because rivals such as Fairchild Semiconductor cut its revenue guidance earlier this week.
TI's stock has already fallen about 18 percent since it reported its results in late July.
© 2017 Thomson/Reuters. All rights reserved.