China Lockdowns Spark TI to Reduce Its Q2 Revenue Guidance by 10%
Texas Instruments expects to report Q2 revenue in the $4.2 billion to $4.8 billion range, which at the high end of the guidance would be flat to slightly down from Q1, said Chief Financial Officer Rafael Lizardi on a Tuesday…
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earnings call. “This outlook comprehends an impact due to reduced demand from COVID-19 restrictions in China, which are affecting our customers' manufacturing operations,” he said. TI’s assessment in early April “indicated that revenue would continue to incrementally grow again in the second quarter,” said Head-Investor Relations Dave Pahl. “However, it just became clear that we were experiencing lower demand, particularly due to COVID-19 restrictions in China.” Taking a “top-down assessment” of the likely impact, TI reduced the midpoint of its Q2 guidance by 10%, he said. “The second thing we did was we slightly widened the range just to comprehend the higher uncertainty that we're seeing overall.”