(Reuters) -Chipmaker Texas Instruments (NASDAQ:) Inc on Tuesday forecast quarterly revenue and profit below estimates, anticipating slowing orders as consumer electronics makers and retailers grapple with bloated inventory, sending its shares down 5%.
Hit by red-hot inflation, consumers have pulled back on non-discretionary spending including on personal electronics, which has left businesses, stocking up ahead of the holiday season, with piled up inventories.
Texas Instrument’s strong segments such as industrials are also starting to show signs of weakness as customers become cautious amid a deepening macroeconomic crisis.
“During the quarter we experienced expected weakness in personal electronics and expanding weakness across industrial,” said TI Chief Executive Officer Rich Templeton.
Shares of the Dallas, Texas-based company fell to $154 in extended trading. They have declined about 14% so far this year, hurt by the slowdown in the PC and smartphones markets.
The company forecast fourth-quarter revenue in the range of $4.40 billion to $4.80 billion, compared with estimates of $4.93 billion, per Refinitiv data.
It forecast profit between $1.83 and $2.11, below estimates of $2.21.
However, the company reported a 13% rise in third-quarter revenue to $5.24 billion. Analysts on average had estimated revenue at $5.14 billion.
Excluding items, it earned $2.45 per share, beating estimates of $2.39.