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Texas Instruments (TXN) Shares Higher on Earnings, Revenue Beats

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Texas Instruments Inc. (TXN - Free Report) just released its latest quarterly financial results, posting earnings of $1.35 per share and total revues of $3.79 billion.

Currently, TXN is a Zacks Rank #2 (Buy), but that could change based on today’s results. Estimates have increased by two cents for the current year over the last two months, and the Zacks Consensus sits at $4.99 per share.

Shares of the global semiconductor company have climbed over 22% in the past year and closed the trading day up a slight 0.34%. The stock is up over 4% in after-hours trading shortly after the earnings report was released.

Texas Instruments:

Beat earnings estimates. The company posted earnings of $1.35 per share, a number that takes into account a 14-cent tax-related benefit that was not included in the company’s original guidance. Taking this benefit out, earnings were $1.21 per share, surpassing the Zacks Consensus Estimate of $1.11 per share. Net income for the quarter was $1.37 billion.

Beat revenue estimates. The company reported revenues of $3.79 billion, topping our consensus estimate of $3.65 billion and growing 11% year-over-year. Revenues benefitted from strong demand of TXN’s Analog and Embedded Processing products in the industrial and automotive markets.

Cash flow from operations was $5.7 billion for the trailing 12 months, while free cash flow for the same period was up 17% from the year ago period to $4.9 billion.

Looking ahead, Texas Instruments expects revenues to fall in the range of $3.78 to $4.10 billion for Q2, with EPS between $1.19 and $1.39 per share (this band includes an estimated $10 million discrete tax benefit). Additionally, the company expects its ongoing annual operating tax rate to be about 16% beginning in 2019 and 20% this year.

Here’s a graph that looks at Texas Instrument’s recent earnings performance:

Texas Instruments is a semiconductor and manufacturing company that develops analog ICs and embedded processors. They produce TI DLP technology and education technology products. Analog products connect the physical and the digital worlds—turning signals like sound, pressure, temperature, humidity and light into digital 1s and 0s to be used by electronic devices—and translating that data back to information we interact with in the real world. TI DLP® technology powers a range of display and advanced light control applications spanning industrial, enterprise, automotive and consumer market segments, including projectors and cinema technology.

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