Texas Instruments (TXN) Tops Q3 EPS by 18c, Revenues Beat; Offers 4Q EPS/Revenue Guidance Above Consensus
Texas Instruments (NASDAQ: TXN) reported Q3 EPS of $1.45, $0.18 better than the analyst estimate of $1.27. Revenue for the quarter came in at $3.82 billion versus the consensus estimate of $3.43 billion.
Regarding the company's performance and returns to shareholders, Rich Templeton, TI's chairman, president and CEO, made the following comments:
- "Revenue increased 18% sequentially with notable strength from the rebound of automotive demand and growing demand from personal electronics. Revenue increased 1% from the same quarter a year ago.
- "In our core businesses, Analog revenue grew 18% and Embedded Processing grew 19% sequentially. From a year ago, Analog revenue grew 7% and Embedded Processing declined 10%.
- "Our cash flow from operations of $5.8 billion for the trailing 12 months again underscored the strength of our business model. Free cash flow for the same period was $5.2 billion and 38% of revenue. This reflects the quality of our product portfolio, as well as the efficiency of our manufacturing strategy, including the benefit of 300-millimeter Analog production.
- "We have returned $6.4 billion to owners in the past 12 months through stock repurchases and dividends. Over the same period, our dividends represented 64% of free cash flow, underscoring their sustainability. In September, we announced we would increase our dividend by 13%. Together, our stock repurchases and dividends reflect our continued commitment to return all free cash flow to our owners.
- "TI's fourth quarter outlook is for revenue in the range of $3.41 billion to $3.69 billion, and earnings per share between $1.20 and $1.40."
GUIDANCE:
Texas Instruments sees Q4 2020 EPS of $1.20-$1.40, versus the consensus of $1.19. Texas Instruments sees Q4 2020 revenue of $3.4-3.69 billion, versus the consensus of $3.33 billion.
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