Texas Instruments Inc. executives said late Tuesday they are placing more emphasis on serving industrial and automotive customers, which have accounted for the hardest hit end markets during the global chip shortage, as sales continued to grow.
On a call with analysts following the release of earnings, David Pahl, Texas Instruments’ TXN, -2.46% head of investor relations, said that the company is placing “additional strategic emphasis on industrial and automotive.” Pahl said that industrial sales made up 41% of revenue for the year, with auto sales making up 21% of sales.
For the year, Texas Instruments reported $ 18.34 billion in revenue, a 27% annual gain.
“These trends have resulted and will continue to result in growing chip content for application, which will drive faster growth compared to the other markets,” Pahl said. To that end, Pahl said the company continues to add capacity incrementally, as it has every quarter.
Read: Chips may be sold out for 2022 thanks to shortage, but investors are worried about the end of the party
While personal electronics accounted for 24% of annual revenue, Pahl said those sales were “down single digits” from the year-ago period.
Kicking off earnings season for U.S. chip makers, Texas Instruments’ results and forecast topped Wall Street expectations. The company posted fourth-quarter net income of $ 2.14 billion, or $ 2.27 a share, compared with $ 1.69 billion, or $ 1.80 a share, in the year-ago period. Revenue rose to $ 4.83 billion from $ 4.08 billion in the year-ago quarter.
Analysts surveyed by FactSet had forecast earnings of $ 1.95 a share on revenue of $ 4.43 billion, based on the company’s outlook of $ 1.83 to $ 2.07 a share on revenue of $ 4.22 billion to $ 4.58 billion.
Texas Instruments said it expects first-quarter earnings of $ 2.01 and $ 2.29 a share on revenue of $ 4.5 billion to $ 4.9 billion, while analysts on average had forecast earnings of $ 1.87 a share on revenue of $ 4.37 billion.
Sales of analog electronics, which convert real-world data such as sound or temperature into digital data, rose 20% to $ 3.76 billion from the year-ago period, while analysts had forecast $ 3.5 billion. Sales of embedded processors, which take that digital data and use it to perform specific tasks, rose 6% to $ 764 million, with analysts expecting $ 698.5 million.
Texas Instruments shares first rallied more than 5% after hours, but by the end of the call shares were up 1% in the extended session. The stock closed the regular session down 2.5% at $ 173.96.
Over the past 12 months, Texas Instruments’ stock price has advanced 0.6%. In comparison, the S&P 500 index SPX, -1.22% is up 13%, the tech-heavy Nasdaq Composite Index COMP, -2.28% has slipped 0.7%, while the PHLX Semiconductor Index SOX, -3.71% has risen 8.8% over that time.