Texas Instruments delivers mixed bag for Q2 earnings, revenue

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.

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