Shares in Texas Instruments tumble 6% after 1Q earnings miss

Investing.com - Investing.com -- Shares in Texas Instruments (NASDAQ:TXN) tumbled more than 6% in after-hours trading after the Dallas-based electronics and semiconductor company slightly missed revenue and profit targets for the first quarter.
Texas Instruments, the third largest semiconductor company in the world, posted quarterly revenues of $3.15 billion for the first three months of the year, up 6% on a year-over-year basis. The revenues fell just short of analysts' estimates of $3.2 billion for the period.
Texas Instruments still reported revenue growth on a year-over-year basis for the sixth consecutive quarter. Rich Templeton, the chairman, president and CEO of Texas Instruments, attributed the growth in part to the company's strong performance in the automotive and industrial markets. The company, he added, was held back by a disappointing quarter with its wireless infrastructure equipment and by the sharp appreciation of the dollar against the euro.
"Even so, our core businesses of Analog and Embedded Processing delivered their seventh and tenth consecutive quarters of year-over-year growth, respectively. Combined, Analog and Embedded Processing comprised 86% of first-quarter revenue," Templeton said in a statement. "Our gross margin of 57.7% was also up almost 4 percentage points from a year ago, reflecting the diversity and longevity of our product portfolio, as well as the efficiency of our manufacturing strategy."
In terms of net profit, Texas Instruments reported earnings per share of $656 million or 0.61 per share, above per share earnings of 0.44 during the first quarter of 2014.
For the second quarter, the company estimates it will earn revenues of $3.12 to $3.38 billion, with earnings per share between 0.60 and 0.70.
"Our estimates assume continuing weakness in our communications equipment and personal electronics markets, particularly for wireless infrastructure equipment and PCs, respectively. We also do not expect a near-term rebound in foreign currency exchange rates," Templeton added.
Shares in Texas Instruments fell 3.75 or 6.39% in after-hours trading to 58.73. Entering Wednesday's session, shares in Texas Instruments were up nearly 10% on the year.