Earnings Results: Texas Instruments stock drops after weak outlook, drags on chip sector after hours

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Texas Instruments Inc. shares dropped in the extended session Tuesday after the chip-maker’s outlook fell well beneath Wall Street estimates, and other chip-maker stocks took an after-hours hit.

Texas Instruments TXN, -1.80%  shares dropped 8.6% after hours, following a 1.8% decline in the regular session to close at $128.57.

The company said it expects fourth-quarter earnings of 91 cents to $1.09 a share on revenue of $3.07 billion to $3.33 billion. Analysts surveyed by FactSet expect $1.28 a share on revenue of $3.59 billion.

The company reported third-quarter net income of $1.43 billion, or $1.49 a share, compared with $1.57 billion, or $1.58 a share, in the year-ago period.

Revenue declined to $3.77 billion from $4.26 billion in the year-ago quarter.

Analysts surveyed by FactSet had forecast earnings of $1.42 a share on revenue of $3.82 billion.

Shares of other chip companies also fell after hours.

Intel Corp. INTC, -0.23%  shares fell 2.3%, with the chip giant reporting earnings Thursday.

ON Semiconductor Corp. ON, -1.08% shares fell 3.4%, Nvidia Corp. NVDA, -0.20%  shares declined 2.1%, while Advanced Micro Devices Inc. AMD, -1.62%  slipped 1.4% and Micron Technology Inc. MU, -1.24%  shares fell 1.9%.

Shares of Skyworks Solutions Inc. SWKS, -1.03%  fell 3% and Taiwan Semiconductor Manufacturing Co. TSM, +1.28%  declined 0.9%.

Qualcomm Inc. QCOM, -0.65%  shares shed 1.8%, and Broadcom Inc. AVGO, -0.73%  shares fell 2.3%.

The PHLX Semiconductor Index SOX, -0.77%  closed down 0.8% Tuesday, and is up 39% for the year, compared with a nearly 20% rise in the S&P 500 index SPX, -0.36%  and a 22% gain in the tech-heavy Nasdaq Composite Index COMP, -0.72%

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