Texas Instruments Inc. may be grappling with a slowdown, but it’s delivering enough sales and earnings the second quarter to reassure investors.

The Dallas semiconductor maker said sales fell 9 percent to $3.67 billion in the second quarter, according to a statement on Tuesday. That topped estimates of $3.6 billion, according to I/B/E/S data from Refinitiv.

Texas Instruments (Nasdaq: TXN) is trying to navigate a difficult time in the semiconductor industry that’s pushing sales into the red, prompting scrutiny from observers. Sales fell about 5 percent in the first quarter from the year-ago period.

The second-quarter sale decline came amid “broad-based” weakness, according to a prepared statement from CEO Rich Templeton in the quarterly release.

“We have just completed our third quarter of year-on-year declines for TI," Chief Financial Officer Rafael Lizardi said on a call with analysts according to prepared remarks on its site. "As we stated last quarter, if you look at the last 30 years of history in our industry, cycles are always different, but typically you could see four to five quarters of year-on-year declines before year-on-year growth resumes. Again, we are not trying to forecast the cycle, but simply offer some historical perspective."

Earnings per share were $1.36, topping estimates of $1.22. That included a 7-cent benefit for items that were not in the original guidance.

Shares of TI jumped about 6 percent during extended trading at 3:13 p.m. Dallas time. That was after share climbed 1.6 percent in regular trading hours.

Still, the outlook was softer than some expected.

The company should have revenue between $3.65 billion and $3.95 billion, the company said. That’s a midpoint of $3.8 billion compared to expectations of $3.83 billion.

TI expects to have third-quarter earnings per share between $1.31 and $1.53. That puts the midpoint at $1.42 compared to an estimate of $1.38.

The slowdown is causing challenges for local growth. While the chipmaker is set to build a facility in Richardson, it advised in a letter during May to the Texas Comptroller of Public Accounts that it would delay the structure for two years based upon current market conditions.

By: DocMemory
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