Conference call on TI website at 4 p.m. Central time today
DALLAS, Oct. 24, 2017 — (PRNewswire) — Texas Instruments Incorporated (TI) (NASDAQ: TXN) today reported third-quarter revenue of $4.12 billion, net income of $1.29 billion and earnings per share of $1.26. Earnings per share include a 2-cent discrete tax benefit not in the company's original guidance.Regarding the company's performance and returns to shareholders, Rich Templeton, TI's chairman, president and CEO, made the following comments:
- "Revenue increased 12 percent from the same quarter a year ago. Demand for our products continued to be strong in the industrial and automotive markets.
- "In our core businesses, Analog revenue grew 16 percent and Embedded Processing revenue grew 17 percent from the same quarter a year ago. Operating margin increased in both businesses.
- "Gross margin of 64.5 percent reflected the quality of our product portfolio, as well as the efficiency of our manufacturing strategy, including the benefit of 300-millimeter Analog production.
- "Our cash flow from operations of $4.8 billion for the trailing 12 months again underscored the strength of our business model. Free cash flow for the trailing 12 months was $4.2 billion and represents 29.0 percent of revenue.
- "We have returned $4.3 billion to owners in the past 12 months through dividends and stock repurchases. In September, we announced we would increase our dividend by 24 percent and also increased our share repurchase authorizations by $6 billion, which together reflect our commitment to return all free cash flow to our owners.
- "TI's fourth-quarter outlook is for revenue in the range of $3.57 billion to $3.87 billion, and earnings per share between $1.01 and $1.15, which includes an estimated $20 million discrete tax benefit."
Free cash flow is a non-GAAP financial measure. Free cash flow is cash flow from operations less capital expenditures.
Certain amounts in the prior period have been recast to conform to the current presentation.
Earnings summary
Amounts are in millions of dollars, except per-share amounts.
|
|
|
3Q17 |
|
3Q16 |
|
Change |
|
Revenue |
$ |
4,116 |
$ |
3,675 |
|
12% |
|
Operating profit |
$ |
1,788 |
$ |
1,408 |
|
27% |
|
Net income |
$ |
1,285 |
$ |
1,018 |
|
26% |
|
Earnings per share |
$ |
1.26 |
$ |
0.98 |
|
29% |
Cash generation
Amounts are in millions of dollars.
|
|
|
|
|
|
Trailing 12 Months | ||||||
|
|
|
|
3Q17 |
|
|
3Q17 |
|
|
3Q16 |
|
Change |
|
Cash flow from operations |
|
$ |
1,722 |
|
$ |
4,821 |
|
$ |
4,673 |
|
3% |
|
Capital expenditures |
|
$ |
186 |
|
$ |
574 |
|
$ |
585 |
|
-2% |
|
Free cash flow |
|
$ |
1,536 |
|
$ |
4,247 |
|
$ |
4,088 |
|
4% |
|
Free cash flow % of revenue |
|
|
|
|
|
29.0% |
|
|
31.1% |
|
|
