Shares of Texas Instruments Inc. (NASDAQ: TXN) surged to all-time highs Wednesday after the chipmaker reported better than expected earnings, a sign that American semiconductor companies are weathering the U.S.-China trade storm.
Q2 Earnings Summary
- Earnings: $1.36 per share
- Revenue: $3.67 billion
The Dallas-based company reported second-quarter net income of $1.31 billion, or $1.36 a share, on revenues of $3.67 billion. Both figures represented notable year-over-year declines, but were above the median forecast of $1.22 per share on $3.6 billion in revenue.
In addition to reporting better than expected results, Texas Instruments raised its third-quarter guidance. The company now expects to earn between $1.31 a share to $1.53 a share on revenue of $3.65 billion to $3.95 billion. On average, analysts had predicted $1.37 in per-share profit on sales of $3.84 billion, according to Bloomberg.
Notably, Texas Instruments announced that shipments to Huawei resumed after the U.S. government issued a temporary ban on doing business with the Chinese telecommunications giant. Huawei accounted for 3% to 4% of Texas Instruments overall revenue, the company said.
“It’s a mix of comms equipment and some handset in there and some other products…if you look from a regional standpoint, I’d say there’s nothing unusual going on,” David Pahl, the company’s head of investor relations, said on the Tuesday earnings call.