- Texas Instruments reported a first quarter revenue of $3.66 billion, surpassing the estimate of $3.6 billion.
- However, this figure marks a year-over-year decrease of 16%.
- The Analog division contributed $2.84 billion, 14% down from the previous year and just above the estimate of $2.81 billion.
- Meanwhile, the Embedded Processing division saw a revenue of $652 million, a 22% year-over-year drop, and under the expected $702 million.
- The company’s Other Revenue was $173 million which is a 33% drop from last year and below the estimate of $202.5 million.
- Earnings per share were $1.20, a decrease from $1.85 in the previous year.
- The company reported an increase in Research and Development expenses, which totaled $478 million, 5.1% higher than the previous year, and above the projected $467.8 million.
- Operating profit was $1.29 billion, down by 34% year-over-year, but above the estimated $1.12 billion.
- Capital expenditure increased by 27% to $1.25 billion, beating the forecast of $1.21 billion.
- Cash and cash equivalents totaled $2.48 billion, showing a drastic year-on-year reduction of 45%, and was below the expected $2.58 billion.
- The revenue forecast for the second quarter ranges from $3.65 billion to $3.95 billion, with the estimate being $3.78 billion.
- The earnings per share are estimated to be between $1.05 and $1.25 for the second quarter.
Texas Instruments on Smartkarma
Analysts on Smartkarma are providing diverse insights on Texas Instruments. Value Investors Club highlights TI’s continuous innovation in analog chip design across various industries like automotive and consumer electronics.
Baptista Research discusses Texas Instruments‘ Q4 2023 earnings, noting a revenue downturn mainly in the Analog and Embedded Processing segments. Despite challenges, Texas Instruments maintains robust capital management strategies, sustaining cash reserves and a solid balance sheet.
A look at Texas Instruments Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 4 | |
| Growth | 3 | |
| Resilience | 3 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 3.0 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Analysts evaluating Texas Instruments using the Smartkarma Smart Scores have indicated a positive long-term outlook for the semiconductor company. With a high Dividend score of 4, investors may find Texas Instruments attractive for potential income generation. Additionally, the company has received solid scores in Growth, Resilience, and Momentum, suggesting a stable and steady performance in these areas over the long run.
As a semiconductor design and manufacturing company, Texas Instruments Incorporated is known for its development of analog ICs and embedded processors. With a global presence in terms of manufacturing and sales operations, the company’s overall Smart Scores outlook, which considers factors like Value, Dividend, Growth, Resilience, and Momentum, positions Texas Instruments favorably for potential growth and stability in the semiconductor industry.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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