(Reuters) -Texas Instruments Inc forecast second-quarter revenue below Wall Street estimates on Tuesday, hit by reduced demand from COVID-19 restrictions in China, sending its shares down 7%.
Supply chain bottlenecks caused by rolling lockdowns in China coupled with high demand for electronic equipment have hampered the company’s ability to increase sales.
Texas Instruments expects second-quarter revenue to be between $4.20 billion and $4.80 billion, compared to analysts’ expectations of $4.94 billion, according to IBES data from Refinitiv.
While Texas Instruments struggles with slowing demand in some markets such as PCs, a shortage of components and equipment to make chips has also hurt its ability to ramp up production to meet strong demand from other markets, including automotive.
Total revenue in the first quarter was $4.91 billion compared with $4.29 billion a year earlier. Analysts were expecting revenue of $4.74 billion, according to IBES data from Refinitiv.
(Reporting by Sonia Cheema; Editing by Krishna Chandra Eluri)
