Categories AlphaGraphs, Earnings, LATEST, Technology
Texas Instruments Q2 profit tops estimates; issues in-line Q3 guidance
Texas Instruments (NASDAQ: TXN) reported a 7% decline in earnings for the second quarter of 2019 as broad-based weakness hurt revenue. However, the results exceeded analysts’ expectations. The company guided earnings and revenue for the third quarter within the consensus estimates range.
Net income for the quarter dropped by 7% to $1.31 billion and earnings declined by 3% to $1.36 per share. Revenue decreased by 9% to $3.67 billion due to broad-based weakness.
Looking ahead into the third quarter, the company expects revenue in the range of $3.65 billion to $3.95 billion and earnings in the range of $1.31 to $1.53 per share, which includes an estimated $10 million discrete tax benefits. For 2019, the company’s annual operating tax rate is still expected to be about 16%.
In core businesses, Analog revenue for the second quarter declined by 6% year-over-year due to decreases in High Volume, Power, and Signal Chain. Embedded Processing revenue dropped by 16% from the same quarter a year ago due to lower demand for Connected Microcontrollers and Processors.
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 47% of free cash flow, underscoring their sustainability.
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 $5.9 billion, or 39% 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 1.60% at $120.07 on the Nasdaq. Following the earnings announcement, the stock rose over 6% in the after-market session.
Most Popular
Infographic: How Constellation Brands (STZ) performed in Q3 2026
Constellation Brands, Inc. (NYSE: STZ) reported net sales of $2.22 billion for the third quarter of 2026, down 10% year-over-year. Organic net sales were down 2%. Net income attributable to
BLK Q4 Preview: BlackRock appears poised for another earnings beat
BlackRock, Inc. (NYSE: BLK), the largest asset management company, is set to publish its fourth-quarter 2025 results next week. The update is expected to shed light on how the firm’s
A look at Best Buy’s (BBY) progress on its growth strategy
Shares of Best Buy Co., Inc. (NYSE: BBY) fell over 3% on Wednesday. The stock has dropped 17% over the past 12 months. The consumer electronics retailer delivered sales and
Comments
Comments are closed.