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Texas Instruments reported better than expected quarter earnings Tuesday but guided lower 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

$1.26 EPS beati $1.13 on $3.59 billion revenue beating $3.49 billion forecast 

Earnings

Texas Instruments (TXN) earned $1.26 a share on sales of $3.59 billion in the March quarter. TXN benefited from a discrete tax benefit of 4 cents a share not in the company's original guidance. The results beat analysts expected earnings of $1.13 a share on sales of $3.49 billion. In the year-earlier period, TI earned $1.21 a share on sales of $3.79 billion.

Texas Instruments Incorporated NASDAQ: $TXN

Market Reaction > After hours $114.37 −2.01 (-1.73%)

Highlights

"Revenue decreased 5% from the same quarter a year ago as demand for our products continued to slow across most markets. ...  In our core businesses, analog revenue declined 2% and embedded processing declined 14% from the same quarter a year ago." Chief Executive Rich Templeton said in a news release.

  • Analog revenue for the first quarter declined by 2% year-over-year due to High Volume and Power despite an increase in Signal Chain.
  • mbedded Processing revenue dropped by 14% from the same quarter a year ago due to lower demand for Processors and Connected Microcontrollers.
  • In the past twelve months, the company has returned $8 billion to owners through stock repurchases and dividends.
  • The company’s strategy is to return all its free cash flow to owners.
  • Over the last twelve months, Texas Instruments’ dividends represented 45% of free cash flow, underscoring their sustainability. Also read:
  • Lam Research Q3 earnings preview Cash flow from operations of $7.2 billion for the trailing 12 months again underscored the strength of the business model.
  • Free cash flow for the trailing 12 months was $6 billion, or 38.4% of revenue. This reflects the quality of the product portfolio, as well as the efficiency of the manufacturing strategy, including the benefit of 300-millimeter Analog production.

TXN Earnings Q1 19

Outlook

For the second quarter, Texas Instruments expects to earn $1.22 a share on sales of $3.6 billion based on the midpoint of its guidance. Wall Street was modeling Texas Instruments earnings of $1.25 a share on sales of $3.68 billion in the June quarter, Zacks said. In the year-earlier quarter, TI earned $1.37 a share on sales of $4 billion.;

Source: TI, Alphastreet

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