Earnings Review and Free Research Report: Texas Instruments’ Revenue Advanced 12%; EPS Surged 29%
Research Desk Line-up: NXP Semiconductors Post Earnings Coverage
LONDON, UK / ACCESSWIRE / November 2, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on Texas Instruments Inc. (NASDAQ: TXN), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=TXN, following the Company's reporting of its third quarter fiscal 2017 financial results on October 24, 2017. The chipmaker outperformed top- and bottom-line expectations. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:
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Get more of our free earnings reports coverage from other constituents of the Semiconductor - Broad Line industry. Pro-TD has currently selected NXP Semiconductors N.V. (NASDAQ: NXPI) for due-diligence and potential coverage as the Company reported on October 25, 2017, its financial results for Q3 2017 which ended on October 01, 2017. Register for a free membership today, and be among the early birds that get access to our report on NXP Semiconductors when we publish it.
At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on TXN; also brushing on NXPI. With the links below you can directly download the report of your stock of interest free of charge at:
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Earnings Reviewed
For the third quarter of the fiscal year 2017, Texas Instruments reported revenues of $4.12 billion, up 12% compared to revenues of $3.68 billion in Q3 2016. The demand for the Company's products continued to be strong in the industrial and automotive markets. Texas Instruments' reported numbers came in ahead of analysts' expectations of $3.92 billion.
During Q3 2017, Texas Instruments' gross profit was $2.66 billion compared to $2.28 billion in Q3 2016. The Company's gross profit margin increased 240 basis points to 64.5%, reflecting the quality of its product portfolio and the efficiency of Texas Instruments' manufacturing strategy, including the benefit of 300-millimeter Analog production.
During Q3 2017, Texas Instruments' operating expenses were $787 million and, on a trailing 12-month basis, were 22% of revenue. Over the last 12 months, Texas Instruments has invested $1.5 billion in R&D. For Q3 2017, Texas Instruments' operating profit was $1.79 billion, up 27% compared to operating profit of $1.41 billion in Q3 2016.
Texas Instruments' net income was $1.29 billion, or $1.26 per share, in Q3 2017 compared to earnings of $1.02 billion, or $0.98 per diluted share, in Q3 2016. The Company's reported quarter results included a $38 million discrete tax benefit that was $18 million higher than the Company's original guidance. Texas Instruments' earnings results topped Wall Street's expectations of $1.12 per share.
Segment Results
During Q3 2017, Texas Instruments' Analog segment's revenue grew 16% to $2.70 billion compared to $2.32 billion in Q3 2016. The operating margin for the Analog segment was 47% in the reported quarter, up from 41.2% in the year-ago same period.
For Q3 2017, Texas Instruments' Embedded Processing segment's revenue advanced 17% to $931 million from $795 million in Q3 2016. The operating margin for the Embedded Processing segment was 34.9% in the reported quarter, up from 28.2% in the year earlier comparable quarter.
Cash Matters
During Q3 2017, Texas Instruments' cash flow from operations was $1.72 billion, up 18% on a y-o-y basis, while capital expenditure was $186 million. On a trailing 12-month basis, the Company's cash flow from operations was $4.82 billion, and trailing 12-month capital expenditure was $574 million. Texas Instruments' free cash flow was $4.25 billion, or 29% of revenue, for the past 12 months.
For Q3 2017, Texas Instruments paid $495 million in dividends and repurchased $650 million of its stock for a total return of $1.15 billion. Over the last 12 months, the Company has paid $1.99 billion in dividends, or about 47% of free cash flow.
Texas Instruments' outstanding share count was reduced by 1.5% over the past 12 months, and has been reduced by 43% since the end of 2004 when the Company initiated a program designed to reduce its share count.
Texas Instruments had $3.44 billion of cash and short-term investments at the end of Q3 2017, 76% of which was owned by the Company's US entities. The Company's Inventory days were 118, up 1 day from the year-ago corresponding period. Texas Instruments' total debt remained unchanged at $3.6 billion with a weighted average coupon rate of 1.93%.
In September 2017, Texas Instruments announced that it would increase dividend by 24%, and also raised its share repurchase authorizations by $6 billion.
Outlook
For Q4 2017, Texas Instruments is forecasting revenue in the range of $3.57 billion to $3.87 billion, and earnings per share between $1.01 and $1.15, which includes an estimated $20 million discrete tax benefit.
Stock Performance
At the closing bell, on Wednesday, November 01, 2017, Texas Instruments' stock marginally dropped 0.35%, ending the trading session at $96.35. A total volume of 3.87 million shares have exchanged hands. The Company's stock price skyrocketed 18.42% in the last three months, 21.50% in the past six months, and 38.75% in the previous twelve months. Moreover, the stock soared 32.04% since the start of the year. The stock is trading at a PE ratio of 21.94 and has a dividend yield of 2.57%. The stock currently has a market cap of $95.77 billion.
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