Categories AlphaGraphs, Earnings, Technology

Texas Instruments Q3 profit jumps 22%, beats estimates

Texas Instruments (TXN) reported a 22% jump in earnings for the third quarter helped by the management of costs and expenses, lower income taxes provision and a rise in revenue. The bottom line came in ahead of analysts’ expectations, while the top line missed consensus estimates. Following this, the stock inched down over 5% in the after-market session.

Net income for the quarter climbed 22% to $1.57 billion and earnings jumped 25% to $1.58 per share. Revenue rose 4% to $4.26 billion. However, demand for the company’s products slowed across most markets.

Looking ahead into the fourth quarter, the company expects revenue in the range of $3.60 billion to $3.90 billion and earnings in the range of $1.14 to $1.34 per share. The company still sees its ongoing annual operating tax rate to be about 20% in 2018 and 16% starting in 2019.

Texas Instruments third quarter 2018 Earnings Infographic
Texas Instruments Q3 2018 Earnings Infographics

In core businesses, Analog revenue for the third quarter grew 8% year-over-year helped by Power and Signal Chain despite a decline in High Volume. Embedded Processing revenue declined 4% from the same quarter a year ago due to lower demand for Processors.

In September, Texas Instruments said it would lift dividend by 24% and also increased its share repurchase authorizations by $12 billion, which together reflect its commitment to return all free cash flow to owners.

In the past twelve months, the company has returned $6.2 billion to owners through stock repurchases and dividends. Over the last 12 months, dividends represented 41% of free cash flow, emphasizing their sustainability. The company remained consistent in returning to owners all of its free cash flow.

Cash flow from operations of $7 billion for the trailing 12 months underscored the strength of the business model. Free cash flow for the trailing 12 months was $5.9 billion, or 37.5% 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.

Shares of Texas Instruments ended Tuesday’s regular session up 0.53% at $100.25 on the Nasdaq. The stock has fallen over 4% in the year so far, while it has risen over 4% in the past year.


Listen to publicly listed companies’ earnings conference calls along with the edited closed caption text.

Most Popular

Does Unity Software (U) stock has more room to run?

Last month, the IPO market was in a full swing. IPOs of Snowflake (NYSE: SNOW) and JFROG (NASDAQ: FROG) had an impressive opening day in September, the former creating a

PepsiCo (PEP): Steady snacking habits amid pandemic drive strong quarter for beverage giant

PepsiCo Inc. (NASDAQ: PEP) beat market expectations on both revenue and earnings for the third quarter of 2020. The company saw the momentum continue in its snacks business while the

Does the virus-driven boom make Electronic Arts (EA) a good investment?

With more and more people turning to virtual entertainment sources, amid the virus-related movement restrictions, video game publishers like Electronic Arts (NASDAQ: EA) are witnessing unusually high demand. Not surprisingly,

One thought on “Texas Instruments Q3 profit jumps 22%, beats estimates

Comments are closed.


Add Comment
Viewing Highlight