International E-commerce News Texas Instruments announced its financial report for the third quarter of 2022 (as of September 30, 2022) after the market on Tuesday, with performance exceeding analysts' expectations. But this is called an analog chip giant warns that except for the automobile market, most terminal markets are expected to show a month-on-month decline in the fourth quarter...
East Time on Tuesday, Eastern Time, Texas Instruments announced its third quarter of 2022 (as of September 30, 2022) financial report after the U.S. stock market. According to the financial report, Texas Instruments' third-quarter revenue was US$5.241 billion, with increasing by 13% year-on-year; net profit was US$2.295 billion, a year-on-year increase of 18%, achieving double-digit percentage growth for six consecutive quarters.
But Texas Instruments warned that, except for the automotive market, most terminal markets are expected to decline month-on-month in the fourth quarter.
According to the preparatory speech of the earnings conference call released on Tuesday, Dave Pahl, vice president and head of investor relations at Texas Instruments, pointed out that Texas Instruments' personal electronic chip revenue declined in the middle of the second quarter in the third quarter in the second quarter in the second quarter in the second quarter, as weak demand spread to this field; the automotive chip business continued to be strong, with revenue growing by about 10% month-on-month; communication equipment chip revenue month-on-month growth rate fell in the middle of the single-digit (high-single digits); the revenue growth rate of enterprise system chips (terminal markets including data centers and enterprise operations) fell in the middle of the single-digit (mid-single digits).
Dave Pahl further pointed out that except for the automobile market, most terminal markets are expected to show a month-on-month decline in the fourth quarter. Automotive and industrial machinery manufacturers contribute more than 60% of their revenue. Some industrial customers are now slowing their orders, but the company said demand in the automotive market remains strong. Some industrial customers are now slowing their orders, but the company said demand in the automotive market remains strong.
Before that, including Samsung Electronics , Intel and Nvidia - all warned that demand was falling sharply and took some measures to deal with the slowing market. "In the quarter, we experienced weak expectations for personal electronics and widening weakness across the industry," Rich Templeton, CEO of Texas Instruments, said in a statement. Overall, orders deteriorate and order cancellations increased as the current quarter progressed. He pointed out that the inventory days in the third quarter increased by 8 days to 133 days, below ideal levels.
Texas Instruments chief financial officer Rafael Lizardi said it is still unclear whether the current decline in demand is simply a customer cut in stocks to reduce inventory or a deeper concern about the economy. He also said: "Even if the economy is stable, you are still in the semiconductor cycle. I wouldn't be surprised if customers had too much inventory over the past two years. Now we go another way."
Lizardi said it is still uncertain whether the current decline in demand is just a customer cutting inventory to reduce inventory, or whether there are deeper concerns about the economy. He also revealed that Texas Instruments currently has no plans to slow down the construction of a new factory.
international e-commerce information learned that Texas Instruments 80% of chips are produced in its own factories, and the company is expanding its internal foundry range. The company said this will lead to higher levels of capital expenditures in the coming years, leading some analysts to worry that those spending will compress their repurchase budgets.
The company expects revenue in the fourth quarter of $4.4 billion to $4.8 billion, lower than analysts' average estimate of $4.93 billion. Earnings per share were $1.83 to $2.11, also lower than expected.
Editor: Elaine
