(Bloomberg) -- Texas Instruments Inc. gave a sales and profit forecast for the current period in line with estimates, indicating that purchasing by electronics makers is poised to improve amid progress resolving the China-U.S. trade dispute.First-quarter earnings will be 96 cents a share to $1.14 a share, on revenue of $3.12 billion to $3.38 billion, the Dallas-based company said Wednesday in a statement. On average, analysts predicted profit of $1.04 a share and sales of $3.2 billion, according to data compiled by Bloomberg.

Texas Instruments has the biggest customer list and widest product range in the semiconductor industry, making its earnings an indicator of demand across the economy. The company has told investors the electronics business is in the middle of a typical cyclical decline after companies ordered too many parts last year. Such gluts typically last five quarters. With Wednesday’s results, Texas Instruments has reported five consecutive periods of year-on-year revenue declines.

“Most markets showed signs of stabilizing,” the company said in the statement.

Shares fell about 1% in extended trading after closing at $133.34 in New York. Despite the revenue declines, the stock has posted a 38% gain in the past 12 months.Three months ago, Texas Instruments said that the U.S. trade dispute with China, the largest purchaser of semiconductors, was adding to customer caution. Since then the countries have signed the first part of what’s promised to be a comprehensive set of trade agreements.The biggest maker of analog chips reported fourth-quarter net income fell to $1.07 billion, or $1.12 per share, from $1.24 billion, or $1.27, in the same period a year earlier. Revenue dropped almost 10% to $3.35 billion. Analysts had estimated a profit of $1.01 a share on sales of $3.21 billion.

Texas Instruments’ chips perform basic functions in everything from factory machinery to mobile phones. The company gets the biggest portion of its revenue from the industrial market and is also a major supplier to automakers and telecommunications equipment producers.

To contact the reporter on this story: Ian King in San Francisco at ianking@bloomberg.net

To contact the editors responsible for this story: Jillian Ward at jward56@bloomberg.net, Andrew Pollack, Dan Reichl

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