Trade Tensions Wear Down Texas Instruments

Texas Instruments (NASDAQ: TXN) entered the quarter with the stock up more than 36% year to date, as investors were looking forward to a turnaround in the semiconductor industry. The company first warned investors about a slowdown in fall 2018, but the third-quarter earnings report released on Wednesday painted a worsening picture as we close the books on 2019.

Revenue fell 11% year over year, with core products -- analog and embedded processors -- experiencing a decline in sales. However, investors were already expecting a soft quarter. What sent the stock down after the earnings announcement was the guidance for a 15% sequential drop in revenue for the fourth quarter. That shows the business environment is worsening, not getting better. As a result, the stock fell 8% after the earnings release.

We'll review what management had to say, and how they are positioning the company for an eventual recovery.

Source Fool.com