Texas Instruments boosts outlook

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Texas Instruments boosts outlook

Chip maker restates earnings to 27 to 30 cents per share on calculators and semiconductor products.

June 7, 2005: 5:34 PM EDT

SAN FRANCISCO, June 7 (Reuters) - Texas Instruments Inc. on Tuesday raised its second-quarter earnings forecast, citing growing demand for its semiconductor products and seasonal growth in calculators used by students.

TI (Research), the world's largest maker of chips for mobile phones, set a new target for earnings of 27 cents to 30 cents per share, compared with its previous range of 25 cents to 29 cents a share.

It also narrowed its expected revenue range to $3.12 billion to $3.24 billion, the high end of the forecast in April of $3 billion to $3.24 billion.

On average, analysts polled by Reuters Estimates had been expecting revenue of $3.14 billion and earnings of 27 cents a share.

The upbeat word from TI comes just weeks after STMicroelectronics announced plans to cut 3,000 jobs outside Asia by mid-2006 and after Europe's biggest chipmaker Infineon Technologies AG posted fiscal second-quarter results that missed market forecasts.

Shares of TI rose 2.46 percent, or 67 cents, to $27.95 in after hours trade on Inet from a close of $27.28 on the New York Stock Exchange.