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Texas Instruments reported better than expected quarter earnings Tuesday and guided higher for the second quarter. $TXN's earnings report ahead of other chipmakers Advanced Micro Devices $AMD, Qualcomm $QCOM and Intel $INTC.

Texas Instruments

 Texas Instruments Inc. (NASDAQ: $TXN) Reported Earnings After Close Tuesday

$1.45 EPS beat $1.27 AND $3.82 billion revenue beat $3.43 billion forecast 

Earnings

Texas Instruments (TXN) reported Q3 EPS of $1.45, $0.18 better than the analyst estimate of $1.27. Revenue for the quarter came in at $3.82 billion versus the consensus estimate of $3.43 billion.

The gross margin of 64.3% however was less than. consensus of 64.6% But operating margin of 42.2% beat consensus of 40%

 

Texas Instruments Incorporated NASDAQ: $TXN

Market Reaction > After hours $152.47▲ 1.64 (+1.09%)

Highlights

  • Revenue increased 18% sequentially with notable strength from the rebound of automotive demand and growing demand from personal electronics.
  • Revenue increased 1% from the same quarter a year ago.
  • Analog revenue grew 18%
  • Embedded Processing grew 19% sequentially.
  • From a year ago, Analog revenue grew 7% and Embedded Processing declined 10%.

"Our cash flow from operations of $5.8 billion for the trailing 12 months again underscored the strength of our business model. Free cash flow for the same period was $5.2 billion and 38% of revenue. This reflects the quality of our product portfolio, as well as the efficiency of our manufacturing strategy, including the benefit of 300-millimeter Analog production."

Buybacks and Dividends

"We have returned $6.4 billion to owners in the past 12 months through stock repurchases and dividends. Over the same period, our dividends represented 64% of free cash flow, underscoring their sustainability. In September, we announced we would increase our dividend by 13%. Together, our stock repurchases and dividends reflect our continued commitment to return all free cash flow to our owners. 

Outlook

 "TI's fourth quarter outlook is for revenue in the range of $3.41 billion to $3.69 billion, and earnings per share between $1.20 and $1.40."

Source: Texas Instruments

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