Texas Instruments Slides By in Q4

Texas Instruments Inc. (NASDAQ: TXN) released fourth-quarter financial results after markets closed Wednesday. The firm said that it had $1.11 in earnings per share (EPS) and $3.35 billion in revenue, compared with consensus estimates that called for $1.02 in EPS and $3.22 billion in revenue. The same period from last year had $1.27 in EPS and $3.72 billion in revenue.

Overall, revenue decreased 10% from the same quarter a year ago as most markets showed signs of stabilizing. In the core businesses, analog revenue declined 5% and embedded processing declined 20% from the same quarter a year ago.

Looking ahead to the first quarter, the outlook calls for revenue in the range of $3.12 billion to $3.38 billion, and EPS between $0.96 and $1.14, which includes an estimated $20 million discrete tax benefit. Consensus estimates are calling for $1.03 in EPS and $3.2 billion in revenue.

Texas Instruments returned $6 billion to shareholders in 2019 through stock repurchases and dividends. For the year, dividends represented 52% of free cash flow, underscoring their sustainability. Together, the stock repurchases and dividends reflect management’s continued commitment to return all free cash flow to shareholders.

Rich Templeton, board chair, president and CEO, commented:

Our cash flow from operations of $6.6 billion for the year again underscored the strength of our business model. Free cash flow for the year was $5.8 billion and 40% 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.

Shares of Texas Instruments closed Wednesday at $133.34, with a 52-week range of $94.81 to $135.69. The consensus analyst price target is $129.00. Following the announcement, the stock was relatively unchanged at $132.80 in the after-hours session.