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Headquartered in Dallas, Texas, Texas Instruments (TXN - Free Report) is a global semiconductor company and an original equipment manufacturer of analog, mixed signal and digital signal processing (DSP) integrated circuits.
Their chips are used in everything from mobile phones to industrial equipment and many smart products.
The company has about 30,000 employees in more than 30 countries and 15 manufacturing sites in 9 countries. More than 85% of their revenue comes from Analog and Embedded Processing segments.
Solid Quarterly Results
The company reported excellent results for the second quarter, exceeding Zacks Consensus Estimates for both earnings and revenues. Net earnings of $1.03 per share exceeded our estimate by eight cents. Revenues of $3.7 billion beat the consensus by $139 million.
Strong results were driven by growth in auto, industrial, communications and personal electronics markets. The company also upgraded its guidance for the third quarter.
"Revenue increased 13% from the same quarter a year ago. Demand for our products continued to be strong in the automotive market and continued to strengthen in the industrial market. In our core businesses, Analog revenue grew 18% and Embedded Processing revenue grew 15% from the same quarter a year ago. Operating margin increased in both businesses,” said the CEO.
Rising Estimates
Analysts have been raising their estimates for the company after stronger than expected results and updated guidance. Zacks Consensus Estimates for the current and next year are now $4.13 per share and $4.30 per share, up from $4.08 and $4.26 respectively, before the results.
Texas Instruments Incorporated Price and Consensus
The company remained committed to return its free cash flow to shareholders through dividends and share repurchases. They have been consistently growing their dividend—from $0.089 per share in 2004 to $2.00 per share currently. Their current dividend yield is 2.41%. During this period, they have reduced their shares outstanding by 42%.
The Bottom Line
In addition to a top Zacks Stock Rank, the stock has Zacks Style Scores of “A” for Momentum while the Semiconductor--General Industry is currently ranked 3 out of 265 Zacks Industries (top 1%). Rising demand for its chips from some high growth areas of the market will continue to support the stock going forward.
Zacks' 10-Minute Stock-Picking Secret
Since 1988, the Zacks system has more than doubled the S&P 500 with an average gain of +25% per year. With compounding, rebalancing, and exclusive of fees, it can turn thousands into millions of dollars.
But here's something even more remarkable: You can master this proven system without going to a single class or seminar. And then you can apply it to your portfolio in as little as 10 minutes a month.
Image: Bigstock
Bull of the Day: Texas Instruments (TXN)
Headquartered in Dallas, Texas, Texas Instruments (TXN - Free Report) is a global semiconductor company and an original equipment manufacturer of analog, mixed signal and digital signal processing (DSP) integrated circuits.
Their chips are used in everything from mobile phones to industrial equipment and many smart products.
The company has about 30,000 employees in more than 30 countries and 15 manufacturing sites in 9 countries. More than 85% of their revenue comes from Analog and Embedded Processing segments.
Solid Quarterly Results
The company reported excellent results for the second quarter, exceeding Zacks Consensus Estimates for both earnings and revenues. Net earnings of $1.03 per share exceeded our estimate by eight cents. Revenues of $3.7 billion beat the consensus by $139 million.
Strong results were driven by growth in auto, industrial, communications and personal electronics markets. The company also upgraded its guidance for the third quarter.
"Revenue increased 13% from the same quarter a year ago. Demand for our products continued to be strong in the automotive market and continued to strengthen in the industrial market. In our core businesses, Analog revenue grew 18% and Embedded Processing revenue grew 15% from the same quarter a year ago. Operating margin increased in both businesses,” said the CEO.
Rising Estimates
Analysts have been raising their estimates for the company after stronger than expected results and updated guidance. Zacks Consensus Estimates for the current and next year are now $4.13 per share and $4.30 per share, up from $4.08 and $4.26 respectively, before the results.
Texas Instruments Incorporated Price and Consensus
Texas Instruments Incorporated Price and Consensus | Texas Instruments Incorporated Quote
Returning Capital to Shareholders
The company remained committed to return its free cash flow to shareholders through dividends and share repurchases. They have been consistently growing their dividend—from $0.089 per share in 2004 to $2.00 per share currently. Their current dividend yield is 2.41%. During this period, they have reduced their shares outstanding by 42%.
The Bottom Line
In addition to a top Zacks Stock Rank, the stock has Zacks Style Scores of “A” for Momentum while the Semiconductor--General Industry is currently ranked 3 out of 265 Zacks Industries (top 1%). Rising demand for its chips from some high growth areas of the market will continue to support the stock going forward.
Zacks' 10-Minute Stock-Picking Secret
Since 1988, the Zacks system has more than doubled the S&P 500 with an average gain of +25% per year. With compounding, rebalancing, and exclusive of fees, it can turn thousands into millions of dollars.
But here's something even more remarkable: You can master this proven system without going to a single class or seminar. And then you can apply it to your portfolio in as little as 10 minutes a month.
Learn the secret >>