Earnings Review and Free Research Report: Texas Instruments’ Quarterly Revenue Jumped 13%; EPS Soared 30%

Research Desk Line-up: STMicroelectronics Post Earnings Coverage

LONDON, UK / ACCESSWIRE / August 1, 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 second quarter fiscal 2017 earnings results on July 25, 2017. The chipmaker’s net revenue rose for the fifth straight quarter and surpassed 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 STMicroelectronics N.V. (NYSE: STM) for due-diligence and potential coverage as the Company reported on July 26, 2017, its financial results for Q2 2017 and the first half which ended on July 01, 2017. Register for a free membership today, and be among the early birds that get access to our report on STMicroelectronics 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 STM. 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

Texas Instruments reported second-quarter revenue of $3.69 billion, up 13% compared to revenue of $3.27 billion in Q2 2016. The Company stated that demand for its products continued to be strong in the automotive market and continued to strengthen in the industrial market. Texas Instruments’ revenue numbers exceeded analysts’ estimates for $3.56 billion.

During Q2 2017, Texas Instruments’ gross profit was $2.37 billion, up compared to gross profit of $2.01 billion in Q2 2016, primarily due to higher revenue. The Company’s gross profit margin increased 300 basis points compared to the year ago same period. Texas Instruments’ operating expenses were $812 million in Q2 2017 and, on a trailing 12-month basis, they were 22.3% of revenue. Over the last 12 months, the Company has invested $1.4 billion in R&D. Texas Instruments’ operating profit was $1.48 billion, or 40.1% of revenue, with operating profit up 31% on a y-o-y basis.

During Q2 2017, Texas Instruments’ net income was $1.06 billion, or $1.03 per share, compared to $819 million, or $0.79 per share, in Q2 2016. The Q2 2017 result included a $28 million discrete tax benefit. The result also topped Wall Street’s expectations for earnings of $0.95 per share.

Operating Segments

During Q2 2017, Texas Instruments’ Analog segment revenue increased 18% to $2.41 billion, primarily due to growth in Power and Signal Chain. The segment’s Embedded Processing revenue increased by 15% from a year ago due to growth in both product lines, Processors and Connected Microcontrollers. The segment’s operating profit surged 38% to $1.08 billion, while operating margin for Analog was 44.7%, up from 38.2% in the prior year’ same quarter.

Texas Instruments’ Embedded Processing segment’s revenue jumped 15% on a y-o-y basis to $868 million, while the segment’s operating profit surged 41% to $271 million. Operating margin for Embedded Processing was 31.2% in the reported quarter, up from 25.4% in the prior year’s same quarter.

Cash Matters

During Q2 2017, Texas Instruments’ cash flow from operations was $917 million and on a trailing 12-month basis, cash flow from operations was $4.56 billion. The Company’s inventory days were 133, even with a year ago same period. Texas Instruments’ capital expenditures were $151 million in Q2 2017 and, on a trailing 12-month basis, capital expenditures were $527 million, or about 4% of revenue. Free cash flow for the past 12 months was $4.04 billion, or 28.5% of revenue.

In Q2 2017, Texas Instruments paid $498 million in dividends and repurchased $650 million of its stock for a total return of $1.15 billion. Total cash returned to owners in the past 12 months was $4.05 billion. Over the last 12 months, the Company has paid $1.88 billion in dividends. Outstanding share count was reduced by 1.2% over the past 12 months and has been reduced by 42% since the end of 2004.

In Q2 2017, Texas Instruments’ retired $375 million of debt, and year-to-date, the Company has retired $625 million. In addition, the Company issued $600 million of debt in 2 tranches: $300 million each in 4-year and 7-year notes; leaving a total debt of $3.6 billion with a weighted average coupon rate of 1.93%.

Texas Instruments’ ended the reported quarter with $2.98 billion of cash and short-term investments.

Outlook

For Q3 2017, Texas Instruments expect revenue in the range of $3.74 billion to $4.06 billion and earnings per share to be in the range of $1.04 to $1.18, which includes an estimated $20 million discrete tax benefit.

Stock Performance

Texas Instruments’ share price finished yesterday’s trading session at $81.38, marginally up 0.83%. A total volume of 5.93 million shares have exchanged hands, which was higher than the 3-month average volume of 4.46 million shares. The Company’s stock price rallied 2.64% in the last three months, 4.47% in the past six months, and 16.67% in the previous twelve months. Additionally, the stock surged 11.53% since the start of the year. Shares of the Company have a PE ratio of 20.00 and have a dividend yield of 2.46%. The stock currently has a market cap of $81.34 billion.

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