Texas Instruments reported a mixed bag of third-quarter results, disappointing investors with a lower-than-expected outlook for the upcoming quarter. The Dallas-based semiconductor giant announced a profit of $1.48 per share and revenue of $4.74 billion, reflecting a 14% increase from the previous year. However, these figures fell short of analyst expectations, which estimated EPS at $1.51 and revenue at $4.65 billion.
For the fourth quarter, Texas Instruments provided guidance that ranges from $1.13 to $1.39 in EPS and revenue projected between $4.22 billion and $4.58 billion. Analysts had anticipated an EPS of $1.41 and revenue of $4.51 billion, leading several analysts, including Morgan Stanley, to cut their price targets for the stock—from $192 down to $175—citing the revenue outlook as a significant surprise.
As a result of the disappointing forecasts, shares of Texas Instruments dropped around 6.5% shortly after the market opened, bringing them to approximately $169. The stock has now seen a year-to-date decline of nearly 10%.
In other stock market news, Netflix saw its shares tumble in premarket trading after reporting third-quarter earnings that also fell short of Wall Street’s expectations. The streaming giant posted earnings per share of $5.87, compared to the $6.92 expected by analysts. Netflix attributed the shortfall to an unplanned charge related to an ongoing dispute with Brazilian tax authorities. Revenue increased by 17% from the prior year to $11.51 billion, aligning with analyst estimates, and the company projected another 17% revenue increase in the fourth quarter due to membership growth and advertising revenue.
In premarket trading, Netflix shares were down over 7%, hovering around $1,150. After a substantial rise of 40% since the beginning of the year, the stock appears to be consolidating within a descending triangle pattern that may signal further declines following the lackluster earnings report.
Conversely, Hilton Worldwide Holdings experienced a boost as shares climbed approximately 3% ahead of the market opening, following the release of its third-quarter results that exceeded expectations. Reports indicated adjusted earnings of $2.11 per share and a nearly 9% year-over-year increase in revenue to $3.12 billion. Analysts had predicted earnings of $2.06 per share and revenue of $3.01 billion.
Despite a slight decline in system-wide comparable revenue per available room (RevPAR), luxury brands within Hilton outperformed, with increases observed in brands like LXR and Waldorf Astoria. Hilton lifted its adjusted EPS guidance for the full year while projecting broader economic growth that could enhance travel demand.
In contrast, Mattel’s stock faced a near 6% drop as it reported third-quarter results that were worse than anticipated. The toy manufacturer revealed adjusted earnings of $0.89 per share and a 6% decline in net sales to $1.74 billion, both figures falling short of analysts’ expectations of $1.04 and $1.83 billion, respectively. The company cited various challenges, including unfavorable foreign exchange impacts and shifts in retailer ordering patterns, as contributing factors to its disappointing performance.
Overall, stock futures indicated a mixed sentiment across the market, with Dow futures resting slightly lower, while S&P 500 futures showed a marginal increase. Meanwhile, Nasdaq futures were also down slightly, continuing the trend of cautious trading following the mixed results from major companies.
