(Reuters) -Texas Instruments expects fourth-quarter revenue and profit to be below analysts’ expectations on Tuesday, as the analog chip maker faces a buildup in markets such as automotive and industrial, forcing customers to are to withhold their orders.
Orders for TI’s chips from the automotive market have stagnated as customers struggle to clear existing inventory amid a years-long slump in demand due to stockpiling during the pandemic.
A continued weakness in the industrial market, which uses chips for tasks such as automating factories, has also hurt orders.
The company expects revenue in the range of $3.70 billion to $4.0 billion, compared to the average analyst estimate of $4.07 billion, according to data compiled by LSEG.
While electrification and the rise of autonomous driving technology have led to increased chip content, the boost is being offset by weaker auto sales as consumers face an uncertain economy.
The company’s results are closely watched as an indicator of demand across a range of industries as its chips find widespread adoption. It is also the first of the major US chip makers to report results for the September quarter.
TI expects fourth-quarter earnings to be between $1.07 and $1.29 per share, while analysts estimate $1.36.
(Reporting by Arsheeya Bajwa in Bengaluru; Editing by Sriraj Kalluvila)
