Texas Instruments ( TXN - Free Report) , a Zacks Rank #1 (Strong Buy) designs and manufactures semiconductor solutions for analog and digital embedded and application processing. It has two major segments: Analog & Embedded Processing. The Analog segment semiconductors change real-world signals such as sound, temperature, pressure or images, by conditioning them, amplifying them and often converting them to a stream of digital data that can be processed by other semiconductors, such as embedded processors. Embedded processing segment designed to handle specific tasks and can be optimized for various combinations of performance, power and cost, depending on the application. Earnings Results The company recently reported Q1 18 earnings results where they beat the Zacks consensus earnings and revenue estimates. This was the ninth consecutive quarter where they either met or beat on both ends. Overall, the results were quite impressive. On a year over year basis, revenues rose by +11%, and EPS increased by +39%. Further, the company posted a +19% improvement in cash flow from operations while free cash flows grew by +17%. On a segment basis, Analog revenues increased by +14% while Embedded Processing revenues rose by +15%. Management cited high demand for its products in both the Industrial and Automotive markets, and broad-based order strength as the big drivers behind the impressive quarterly results. Most importantly for the long term outlook of the company, the Q1 results eased fears that semiconductor demand was decelerating. In the previous quarter there had been some concern that the semiconductor demand was hitting its peak cycle, but Q1’s performance, and strong Q2 guidance has eased those fears. Looking Ahead Going forward, management’s Q2 EPS and revenue guidance was just above the midpoints of the consensus estimates; EPS now between $1.19-1.39, and revenues ranging from $3.78-4.1 billion. Further, management commented that its operating tax rates would be lower for both 2019 and 2020 than previously expected; 16% for 2019 down from 18%, and 20% in 2018 down from 23%. Price and Earnings Consensus Chart As you can see in the chart below, TXN has been on a steady uptrend since the beginning of 2016, and fiscal earnings estimates have moved up year after year.