Texas Instruments (TXN) revealed a 48% jump in second-quarter profits and stronger-than-expected adjusted earnings on Monday even as the chip maker’s revenue declined 9%.
Shares of TI ticked higher in after-hours action following the slight earnings beat.
The company said it earned $660 million, or 58 cents a share, last quarter, compared with a profit of $446 million, or 38 cents a share, a year earlier.
The recent results were impacted by a gain tied to the transfer of wireless connectivity technology to a customer and higher-than-expected restructuring charges. The net impact of those items was a gain of 16 cents per share.
Excluding the one-time items, TI said it earned 42 cents a share, besting the Street’s view by a penny.
Revenue fell 9% to $3.05 billion, compared with consensus calls from analysts for $3.06 billion. Sales were up 6% sequentially as industrial and automotive markets improved.
Looking ahead, TI forecasted third-quarter EPS of 49 cents to 57 cents on revenue of $3.09 billion to $3.35 billion. Wall Street had been looking for third-quarter EPS of 50 cents on revenue of $3.20 billion.
Rich Templeton, TI’s CEO, said backlog increased during the second quarter, “and with it, visibility into the second half improved.”
Management reaffirmed its call for full-year capital expenditures of about $500 million. TI said it plans to update its third-quarter outlook on September 10.
Dallas-based TI saw its shares jump 1.60% to $38.20 in extended trading, positioning them to extend their 2013 rally of 21%.