Texas Instruments Inc.'s second-quarter income and revenue jumped as demand continued to recover after the recession, yet investors had wanted even better results after seeing strong reports recently from other technology companies.
Shares fell more than 5 percent following the chip maker's report Monday.
TI said net income nearly tripled to $769 million, or 62 cents per share, for the quarter that ended June 30. That matched the average forecast of analysts polled by Thomson Reuters. In the same period last year, TI earned $260 million, or 20 cents per share.
Revenue rose 42 percent to $3.5 billion, matching the average analyst forecast. It was $2.46 billion in the same period last year.
For the third quarter, TI forecasts net income of 64 cents to 74 cents per share. Analysts have been expecting 64 cents. TI says revenue should be $3.55 billion to $3.85 billion. Analysts put it at $3.65 billion.
Dallas-based TI saw a deep swoon in orders during the recession, dropping to its low in first quarter of 2009. With the second-quarter results, the company has recovered to pre-recession levels.
Still, the stock fell $1.33, or 5.2 percent, to $24.22 in extended trading, reversing nearly two weeks of gains. Before the release of results, shares of the company rose 78 cents, or 3.1 percent, to close at $25.55.
Bill Kreher, an analyst at Edward Jones, said investors were betting on even stronger revenue figures after a blowout report from larger chip maker Intel Corp. last week.
TI's best sellers were analog chips, which are used in phones and other electronics to regulate power and convert sound into electric pulses. Revenue from that division was up 56 percent to $1.5 billion.
Sales of embedded processors, used in communications networks, car electronics and many other application, grew 47 percent to $516 million.
TI is getting out of its once-strong business of making "baseband" chips for cell phones, which handle communications with cell towers, and is focusing its wireless business on chips that handle more GPS navigation, Wi-Fi connections and running programs. That business saw an 18 percent revenue increase, to $727 million.
Kreher said he remains cautious overall on the company, and wants to see that it can "meaningfully" grow revenue once the bounce-back from the recession is over, given the expected decline in the baseband business.
© Copyright 2017 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.