Chipmaker Texas Instruments forecasts quarterly revenue below estimates By Reuters

(Reuters) -Texas Devices Inc forecast second-quarter income under Wall Road estimates on Tuesday, hit by lowered demand from COVID-19 restrictions in China, sending its shares down 7%.

Provide chain bottlenecks attributable to rolling lockdowns in China coupled with excessive demand for digital gear have hampered the corporate’s potential to extend gross sales.

Texas Devices (NASDAQ:) expects second-quarter income to be between $4.20 billion and $4.80 billion, in comparison with analysts’ expectations of $4.94 billion, in response to IBES knowledge from Refinitiv.

Whereas Texas Devices struggles with slowing demand in some markets resembling PCs, a scarcity of elements and gear to make chips has additionally damage its potential to ramp up manufacturing to fulfill sturdy demand from different markets, together with automotive.

Complete income within the first quarter was $4.91 billion in contrast with $4.29 billion a yr earlier. Analysts had been anticipating income of $4.74 billion, in response to IBES knowledge from Refinitiv.