Texas Instruments delivers mixed bag for Q2 earnings, revenue

Summary:Wall Street was looking for earnings of 41 cents per share on a revenue of $3.06 billion. We got $3.047 billion.

Texas Instruments published second quarter earnings well after the bell on Monday.

The semiconductor maker reported a second quarter net income of $660 million with earnings of 59 cents per share (statement).

Non-GAAP earnings were 58 cents per share on a revenue of $3.047 billion, up six percent on a quarterly basis but down by nine percent annually.

Wall Street was looking for earnings of 41 cents per share on a revenue of $3.06 billion.

TI shares were initially up by 0.5 percent in after-hours trading once the report dropped around 1:30PM PT.

CEO Richard Templeton reflected on the quarter in prepared remarks:

Our balance sheet remains strong, with $3.2 billion of cash and short-term investments at the end of the quarter, 82 percent of which is owned by the company's U.S. entities, even after reducing debt by $500 million. Inventory days were 105, up from 101 a year ago, and consistent with our model of 105-115.

Numbers to know from TI's Q2:

  • Analog and Embedded Processing now account for 78 percent of total revenue.
  • Legacy wireless products declined to less than five percent of revenue. TI projected that to drop to below two percent in Q3.
  • TI returned approximately $1 billion to shareholders through dividends and stock repurchases in Q2.

GUIDANCE

For the third quarter, Wall Street expects Texas Instruments to deliver earnings of 51 cents per share on a revenue of $3.2 billion.

TI responded with Q3 guidance of $3.09 billion to $3.35 billion in revenue with earnings of 49 to 57 cents per share.

Topics: Hardware, Mobility, PCs, Processors, Tech Industry

About

Rachel King is a staff writer for CBS Interactive based in San Francisco, covering business and enterprise technology for ZDNet, CNET and SmartPlanet. She has previously worked for The Business Insider, FastCompany.com, CNN's San Francisco bureau and the U.S. Department of State. Rachel has also written for MainStreet.com, Irish Americ... Full Bio

zdnet_core.socialButton.googleLabel Contact Disclosure

Kick off your day with ZDNet's daily email newsletter. It's the freshest tech news and opinion, served hot. Get it.

Related Stories

The best of ZDNet, delivered

You have been successfully signed up. To sign up for more newsletters or to manage your account, visit the Newsletter Subscription Center.
Subscription failed.