Texas Instruments shares tumble after 'weak' forecasts

Shares of US-based Texas Instruments tumbled more than 8%, a day after the chip maker announced positive earnings results that were overshadowed by a bleaker earnings forecast for the upcoming quarter, an Associated Press report said.

The Associated Press report said shares of Texas Instruments fell $2.84, or 8.29%, to $31.43 in trading. Shares had gained $0.35 to close at $34.27 Monday, before the company released its report. The stock has ranged from $28.24 to $39.63 in the past year.

The chip maker said net income rose 11% to $776 million, or $0.54 per share, in the quarter ended September 30, the report added.

That included a $0.02 per-share gain from the previously announced sale of a business unit, and was enough to beat Wall Street estimates of $0.50 per share, according to Thomson Financial.

But Texas Instruments also said its fourth quarter would be lower than analysts' projections due to seasonal and market factors, according to the report.

The Associated Press report said analysts had predicted Texas Instruments would make $0.50 a share on revenue of $3.72 billion.

Company officials cited a seasonal slowdown in wireless products used by handset makers such as Motorola and Sony Ericsson for the shortfall, the report further said.