Shares of Texas Instruments (TXN 2.34%) fell as much as 3.1% in after-hours trading as investors responded to TI's fourth-quarter results.
The microchip supplier reported fourth-quarter earnings of $0.46 per share on $3.0 billion in sales. These figures were in line with analyst estimates and a relatively strong finish to 2013.
Analog and embedded chips saw double-digit percentage growth from 2012 levels. The "other" division, where TI places products such as calculators, DLP television systems, and custom processors, turned Q4 2012 losses into a 2013 profit, on 27% lower segment revenue. That was expected, as TI slowly lets go of its unprofitable legacy wireless product lines under this banner. The "other" division now accounts for just 18% of the company's total sales.
Looking ahead, TI expects first-quarter EPS in the $0.40 range on sales of roughly $3 billion. The revenue guidance is in line with Wall Street targets, but earnings projections fell short.
"Our fourth quarter capped a year in which each quarter's performance increasingly reflected the impact of structural changes we've made to focus TI on Analog and Embedded Processing, where the diversity and longevity of our positions are assets," said CEO Rich Templeton in a prepared statement.
Share prices may be down, but don't cry for Texas Instruments' shareholders. Bouncing back from after-hours lows, the stock is trading less than 2% below last month's 52-week highs.
