On Monday Texas Instruments Inc., announced that its profit for the 4th quarter rose by 34% due to strong demand of chips for mobile phones and other electronic devices but at the same time was cautious about its outlook for the first quarter of this year.
TI which is the largest chip maker for mobile phones said that it earned $655 million, or 40 cents per share, up from $490 million, or 28 cents per share, a year earlier.
The results include the $17 million or three cents per share for stock-based compensation, which analysts typically exclude from their forecasts. According to a Thomson Financial survey, analysts were expecting TI to earn 42 cents per share in the October-December period.
The revenue of TI rose to $3.59 billion from $3.15 billion a year ago, whereas analysts forecasted sales of $3.64 billion. Furthermore, TI also announced that its directors have approved a $5 billion stock buyback.
For the year 2005, TI earned $2.32 billion or $1.39 per share, on revenue of $13.39 billion, compared to earnings of $1.86 billion or $1.05 per share on sales of $12.58 billion in 2004.
Before the release of the results, TI shares rose four cents to close at $31.70 on the New York Stock Exchange but in after-hours trading, it dropped 85 cents to close at $30.85.