Texas Instruments Beat Earnings. Why Its Stock Is Dropping.

Texas Instruments earnings topped estimates but its stock was dropping in after-hours trading Tuesday after the chip maker provided a revenue forecast for the December quarter below expectations. Texas Instruments (ticker: TXN) gave a revenue forecast range for the current quarter of $3.93 billion to $4.27 billion—which was below consensus of $4.5 billion. Texas Instruments shares fell by 4.9% to $139.75 in after-hours trading Tuesday.