- Texas Instruments reported 2nd quarter revenue of $3.82 billion, matching estimates but down 16% year-over-year.
- Analog revenue was $2.93 billion, down 11% year-over-year, in line with estimates.
- Embedded processing revenue came in at $615 million, a sharp decline of 31% year-over-year and below the estimated $661 million.
- Other revenue was $279 million, down 22% year-over-year but above the estimate of $217.4 million.
- EPS (Earnings Per Share) was $1.22, compared to $1.87 the previous year.
- Research and Development (R&D) expenses were $498 million, up 4.4% year-over-year and higher than the estimate of $489.5 million.
- Operating profit stood at $1.25 billion, a decline of 37% year-over-year but slightly above the estimate of $1.24 billion.
- Capital expenditure was $1.06 billion, a 26% decrease year-over-year, missing the estimate of $1.24 billion.
- Cash and cash equivalents were reported at $2.74 billion, down 20% year-over-year but above the estimate of $2.42 billion.
- For the third quarter, Texas Instruments forecasts revenue in the range of $3.94 billion to $4.26 billion, compared to an estimate of $4.14 billion.
- Earnings per share for the third quarter are expected to be between $1.24 and $1.48.
- Analyst consensus includes 11 buys, 21 holds, and 6 sells.
Texas Instruments on Smartkarma
On Smartkarma, independent investment analysts have been covering Texas Instruments with a bullish outlook. Baptista Research‘s report titled “Texas Instruments: Fresh Investments In Manufacturing & Technology & 5 Critical Growth Drivers” highlights TI’s first quarter of 2024 revenue meeting expectations despite a decline in revenue across all end markets. Analog revenue dropped 14% year-over-year, while Embedded Processing and the Other segment saw even steeper declines. This report sheds light on the challenges and opportunities facing Texas Instruments in the current market.
Another report by Baptista Research, “Texas Instruments: A Tale of Strong Cash Generation and Capital Management! – Major Drivers,” discusses the Q4 2023 earnings release of Texas Instruments. The report notes a downturn in revenue, with a sequential decrease of 10% and a year-on-year drop of 13% to $4.1 billion. Declining sales in segments like Analog, Embedded Processing, and Other have been key contributors to this revenue decline. These insights provide valuable information for investors looking to understand the financial performance and strategic direction of Texas Instruments.
A look at Texas Instruments Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 3 | |
| Growth | 3 | |
| Resilience | 3 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.2 |
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
When looking at the long-term outlook for Texas Instruments, the company appears to be in a solid position based on a combination of key factors. According to Smartkarma Smart Scores, Texas Instruments scores well in terms of Momentum with a top score of 5. This indicates a strong positive trend in the company’s stock performance, suggesting good potential for future growth.
Additionally, Texas Instruments scores moderately across Value, Dividend, Growth, and Resilience factors, with scores of 2, 3, 3, and 3 respectively. While not the highest scores, these ratings suggest a company that is stable, growing steadily, and offering some dividend income to investors. Overall, Texas Instruments Incorporated, a semiconductor design and manufacturing company with global operations, seems to have a promising outlook for the long term.
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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