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After about two years of high demand and tight supply, consumers have pulled back on non-discretionary spending, hit by red-hot inflation. This shift has left businesses, which anticipated high demand, with bloated inventories.
Shares of the Dallas, Texas-based company fell 4.4% in trading after the bell. They have declined about 14% so far this year, hurt by the slowdown in the PC and smartphones markets.
Apart from an already weak consumer electronics demand, Texas Instrument’s strong segments including automotive and industrial are also starting to show cracks of weakness as customers become cautious amid a deepening macroeconomic crisis.
The company forecast fourth-quarter revenue in the range of $4.40 billion to $4.80 billion, compared to estimates of $4.93 billion.
TI reported revenue of $5.24 billion in the third quarter, compared with analysts’ average estimate of $5.14 billion, per Refinitiv data.
