(Reuters) – Chipmaker Texas Instruments Inc’s (TXN.O) fourth-quarter earnings failed to exceed Wall Street expectations after several quarters of better-than-expected results, sending its shares down 5 percent on Tuesday.
The Dallas-based company reported a 67 percent slump in profit to $344 million in the quarter ended Dec. 31, mainly due to tax-related expenses from new U.S. tax laws.
Excluding the tax expense, Texas Instruments earned $1.09 per share, matching analysts’ average estimate, according to Thomson Reuters I/B/E/S.
Net revenue rose 9.8 percent to $3.75 billion and edged past analysts’ estimate of $3.74 billion.
“It’s not a blow-out result, but it is perfectly fine,” said Stacy Rasgon, an analyst at Bernstein.
Revenue from the company’s analog chips division, its largest, rose 11 percent, while its embedded processing unit posted revenue growth of 20 percent.
Texas Instruments’ analog chips are used by industries to calculate changes in sound and temperature. The company also makes chips for the automotive sector.
Texas Instruments forecast current-quarter earnings of $1.01 to $1.17 per share and revenue of $3.49 billion to $3.79 billion.
Reporting by Munsif Vengattil in Bengaluru; editing by Sai Sachin Ravikumar