Free Research Report as Texas Instruments’ Revenues Jumped 9%; EPS Surged 36%

Stock Monitor: GSI Technology Post Earnings Reporting

LONDON, UK / ACCESSWIRE / July 31, 2018 / If you want access to our free earnings report on Texas Instruments Inc. (NASDAQ: TXN), all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=TXN. The Company reported its second quarter fiscal 2018 operating and financial results on July 24, 2018. The chipmaker outpaced top- and bottom-line expectations. Additionally, the Company provided its guidance for the upcoming quarter. Register today and get access to over 1,000 Free Research Reports by joining our site below:

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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Texas Instruments most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:

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Earnings Highlights and Summary

For the second quarter of the fiscal year 2018, Texas Instruments reported revenues of $4.02 billion, up 9% compared to $3.69 billion in Q2 2017. The Company's revenue numbers beat analysts' estimates of $1.33 per share.

During Q2 2018, Texas Instruments' gross profit was $2.62 billion compared to $2.37 billion in Q2 2017, primarily driven by higher revenues. The Company's gross margin was 65.2% of revenues in the reported quarter, up 90 basis points (bps) compared to the year ago same period.

For Q2 2018, Texas Instruments' operating expenses were $825 million, reflecting an increase of 2% on a y-o-y basis. On a trailing 12-month basis, the Company's operating expenses were 20.6% of revenues, and were within its range of expectations. Texas Instruments' operating profit was $1.71 billion, or 42.6% of revenues, in Q2 2018, up 16% from the year ago comparable quarter.

Texas Instruments posted a net income of $1.41 billion, or $1.40 per diluted share, in Q2 2018 compared to $1.06 billion, or $1.03 per share, in Q2 2017. The Company's earnings included a discrete tax benefit of $0.03 per share in the reported quarter. Texas Instruments' earnings numbers exceeded Wall Street's estimates of $1.33 per share.

Segment Results

During Q2 2018, Texas Instruments' Analog segment's revenues grew 12% to $2.69 billion on a y-o-y basis, due to Power and Signal Chain. The segment's operating margin was 47% in the reported quarter, up from 44.7% in the prior year's corresponding quarter.

For Q2 2018, Texas Instruments' Embedded Processing segment's revenues increased 9% to $843 million on a y-o-y basis, due to an approximately equal growth in both Processors and Connected Microcontrollers. The segment's operating margin was 35.4% in the reported quarter, up from 31.2% in the year earlier same quarter.

Cash Matters

For the trailing twelve months, Texas Instruments' cash flow from operations was $6.6 billion; while its free cash flow was $5.7 billion, or 36.6% of revenues. The Company returned $5.6 billion to owners in the past 12 months through stock repurchases and dividends. Over the last 12 months, Texas Instruments' dividends represented 41% of free cash flow, emphasizing their sustainability.

Texas Instruments' balance sheet remains strong with $5.13 billion of cash and short-term investments at the end of Q2 2018. For the reported quarter, the Company retired $0.5 billion of debt as it became due and raised $1.5 billion of 30-year debt with a coupon of 4.15%. Texas Instruments had a total debt of $5.1 billion, with a weighted average coupon of 2.77%.

Outlook

For the third quarter of 2018, Texas Instruments is forecasting revenues to be in the range of $4.11 billion to $4.45 billion, and earnings per share to be between $1.41 and $1.63, which includes an estimated $10 million discrete tax benefit.

Stock Performance Snapshot

July 30, 2018 - At Monday's closing bell, Texas Instruments' stock dropped 1.50%, ending the trading session at $110.91.

Volume traded for the day: 4.30 million shares.

Stock performance in the last month – up 1.66%; previous three-month period – up 9.35%; past twelve-month period – up 37.42%; and year-to-date – up 6.19%

After yesterday's close, Texas Instruments' market cap was at $109.17 billion.

Price to Earnings (P/E) ratio was at 25.41.

The stock has a dividend yield of 2.24%.

The stock is part of the Technology sector, categorized under the Semiconductor - Broad Line industry.