Shares of Texas Instruments Inc. tumbled in after-hours trading after the chip maker reported a year-over-year decline in net income for the third quarter and revenue that came in below analysts' expectations.
The semiconductor company's net income fell in the third quarter to $1.43 billion, or $1.49 per share, from $1.57 billion, or $1.58 per share, in the year-ago period. The S&P Global Market Intelligence consensus GAAP EPS estimate for the quarter was $1.42.
Texas Instruments said its third-quarter EPS included a benefit of 9 cents for items that were not part of its original guidance.
Third-quarter revenue fell 11% year over year to $3.77 billion from $4.26 billion, missing the S&P Global Market Intelligence consensus estimate of $3.82 billion.
Texas Instruments shares were down 10.01% as of 5:25 p.m. ET, after ending the trading day 1.8% lower.
Texas Instruments Chairman, President and CEO Rich Templeton said "most markets weakened further" in the third quarter, with revenue in the analog and embedded processing segments dropping 8% and 19% year over year, respectively.
In the fourth quarter, Texas Instruments expects to earn between 91 cents per share and $1.09 per share. Revenue for the quarter was forecast to be in the range of $3.07 billion to $3.33 billion.
The projected financial outlook for the fourth quarter includes an estimated $5 million discrete tax benefit, the company said.