© Stocksak. FILE PHOTO A Texas Instruments Office is seen in San Diego, California, U.S.A, April 24, 2018. REUTERS/Mike Blake
(Stocksak) –Chipmaker Texas Instruments NASDAQ (NASDAQ:) Inc has lowered its current-quarter revenue forecast for Tuesday, citing concerns about slowing sales as retailers and electronics makers struggle to manage piled-up inventory.
After nearly two years of high-demand and tight supply consumers have cut back on non-discretionary purchases, hit by red hot inflation. This has resulted in bloated inventories for businesses that anticipated high demand.
After the bell, shares of the Dallas-based company plunged 4.4%. They have fallen 14% so far this fiscal year, impacted by slowdowns in the smartphone and PC markets.
Aside from a weak consumer electronics demand, Texas Instrument’s strong segment of automotive and industrial are beginning to show signs of weakness as customers become more cautious in a macroeconomic crisis.
The company projects fourth-quarter revenue between $4.40 billion and $4.80 billion, which is a significant increase from the $4.93 billion estimate.
TI reported revenue in the third quarter of $5.24 Billion, compared to analysts’ average estimate at $5.14 Billion, according to Refinitiv data.