Texas Instruments forecasts revenue below estimates

Texas Instruments Inc. posted a decline in quarterly revenue as demand for its chips slipped on economic concerns, and the company forecast more weakness this quarter.

The maker of chips used in products ranging from consumer electronics to industrial equipment posted a profit of $784 million US, or 67 cents per share, down from $601 million, or 51 cents per share, in the year-ago quarter.

Revenue declined to $3.39 billion from $3.47 billion in the year-ago quarter.

TI forecast fourth-quarter earnings of 23 to 31 cents per share on revenue of $2.83 billion to $3.07 billion.

Analysts on average had expected TI's revenue in the current quarter to be $3.24 billion, according to Thomson Reuters I/B/E/S.

"It's definitely light. ... But I don't know how surprising that is given what we've seen in semiconductors and tech recently," said Stacy Rasgon, an analyst at Bernstein Research.