Texas Instruments provided a revenue forecast for the September quarter slightly below expectations, citing weak demand.
Its shares fell in after-hours trading.
For the June quarter, the semiconductor company reported earnings per share of $1.87, compared with Wall Street's consensus estimate of $1.76, according to FactSet. Revenue came in at $4.53 billion, which was above analysts' expectations of $4.37 billion.
But Texas Instruments (ticker: TXN) gave a revenue forecast range for the current quarter of $4.36 billion to $4.74 billion—which was slightly below consensus of $4.59 billion at the midpoint of the range.
"Similar to last quarter, we experienced weakness across our end markets with the exception of automotive," CEO Haviv Ilan said in the news release.
Texas Instruments shares fell by 4% to $178.64 following the results.
The chip maker sells the basic building-block chips that go into products in nearly every sector of the economy from autos and industrials to consumer electronics.
On the call, management said inventory levels are likely to go up during the current quarter as it adds capacity. It also said chip order cancellations remain at "elevated levels."
Texas Instruments stock is up 14% for the past 12 months, compared with the 34% rise for the iShares Semiconductor exchange-traded fund (SOXX). The ETF tracks the performance of the ICE Semiconductor Index.