Texas Instruments Comes Up With Earnings Beat, Q2 Guidance
Texas Instruments stock saw a nice pop early Wednesday in the wake of better than expected first-quarter results.
When Texas Instruments Inc. (NASDAQ: TXN | TXN Price Prediction) released first-quarter financial results after markets closed Wednesday, the firm said that it had $1.24 in earnings per share (EPS) and $3.33 billion in revenue. The consensus forecast had called for $1.00 in EPS and $3.17 billion in revenue, and the same period of last year reportedly had $1.26 in EPS and $3.59 billion in revenue.
Overall, revenue decreased 7% from the same quarter a year ago. In the core businesses, analog revenue declined 2% and embedded processing declined 18% from the same quarter a year ago.
In terms of its segments, the company reported:
- Analog revenues came in at $2.46 billion, with an operating profit of $1.03 billion.
- Embedded Processing revenue totaled $653 million, with an operating profit of $182 million.
- Other revenue decreased 23% year over year to $216 million, with an operating profit of $37 million.
Looking ahead to the second quarter, the outlook calls for revenue in the range of $2.61 billion to $3.19 billion, and EPS between $0.64 and $1.04, which includes an estimated $10 million discrete tax benefit. Consensus estimates are calling for $0.99 in EPS and $3.15 billion in revenue.
Rich Templeton, board chair, president and CEO, commented:
With a COVID-19 recession likely upon us, and with reduced visibility of customer demand, we are using the 2008 financial crisis to model our second quarter outlook. To reflect the increased uncertainty, we have expanded the range of our guidance.
Texas Instruments stock traded up 3% early Wednesday at $110.02, in a 52-week range of $93.09 to $135.70. The consensus price target is $121.50.
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Chris Lange is a financial and geopolitical writer with more than a decade of experience covering a myriad of topics. He has published thousands of articles for 24/7 Wall St., with past coverage focused heavily on stocks, IPOs, healthcare, defense, global affairs, and technology.
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