Texas Instruments (NYSE: TXN) cruised past Wall Street's expectations Tuesday with second quarter operating earnings of 92 cents a share and said it sees strong semiconductor sales in upcoming quarters.
First Call Corp. was expecting earnings of 86 cents a share.
"TI anticipates continued growth in its semiconductor business in the second half of the year, with revenues increasing sequentially," the company said in a statement. "The wireless market is expected to continue to be strong."
TI, which has turned itself around by focusing on digital signal processors (DSPs), has been fueled be strong growth in wireless communications. TI raised its estimate for industry sales of digital phones from 230 million to 245 million units this year.
Revenue for the quarter came in at $2.346 billion, up 8 percent, from the $2.16 billion reported a year ago. "Growth in semiconductor more than offset the loss of revenue from the divested memory business," the company said. Revenue jumped 15 percent from the first quarter.
Net income for the quarter was $372 million, up 163 percent from the $142 million a year ago, excluding special charges. The difference was attributed to the " absence of losses from the divested memory business." TI sold its dynamic random access memory business to Micron Technology (NYSE: MU) last year.
The company said orders in the second quarter were $2.5 billion, up 30 percent from a year ago and 15 percent from the first quarter.
Including a $52 million charge related to the acquisition of Libit Signal Processing Ltd. In addition, TI had $85 million for catch-up royalties under a deal with Hyundai Electronics Industries Co., which contributed about 12 cents a share to profits. Including those items, TI had earnings of 80 cents a share.
TI will detail more about its quarter in a 10 a.m. ET conference call, which will be webcast at www.ti.com.