Conference call on TI website at 3:30 p.m. Central time today
DALLAS, Oct. 22, 2019 — (PRNewswire) — Texas Instruments Incorporated (TI) (Nasdaq: TXN) today reported third quarter revenue of $3.77 billion, net income of $1.43 billion and earnings per share of $1.49. Earnings per share include a 9-cent benefit for items that were 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 decreased 11% from the same quarter a year ago, as most markets weakened further.
- "In our core businesses, Analog revenue declined 8% and Embedded Processing declined 19% from the same quarter a year ago.
- "Our cash flow from operations of $7.0 billion for the trailing 12 months again underscored the strength of our business model. Free cash flow for the trailing 12 months was $6.0 billion and 41% 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.
- "We have returned $7.4 billion to owners in the past 12 months through stock repurchases and dividends. Over the last 12 months, our dividends represented 48% of free cash flow, underscoring their sustainability. In September, we announced we would increase our dividend by 17%. Together, our stock repurchases and dividends reflect our continued commitment to return all free cash flow to our owners.
- "TI's fourth quarter outlook is for revenue in the range of $3.07 billion to $3.33 billion, and earnings per share between $0.91 and $1.09, which includes an estimated $5 million discrete tax benefit. We continue to expect our annual operating tax rate to be about 16% in 2019."
Free cash flow, a non-GAAP financial measure, is cash flow from operations less capital expenditures.
Earnings summary
Amounts are in millions of dollars, except per-share amounts.
|
| Q3 2019 |
| Q3 2018 |
| Change | |||
Revenue | $ | 3,771 |
| $ | 4,261 |
| (11)% | |
Operating profit | $ | 1,589 |
| $ | 1,937 |
| (18)% | |
Net income | $ | 1,425 |
| $ | 1,570 |
| (9)% | |
Earnings per share | $ | 1.49 |
| $ | 1.58 |
| (6)% | |
Cash generation
Amounts are in millions of dollars.
|
|
|
| Trailing 12 Months | ||||||||||
|
| Q3 2019 |
| Q3 2019 |
| Q3 2018 |
| Change | ||||||
Cash flow from operations | $ | 1,992 |
| $ | 7,040 |
| $ | 6,973 |
| 1% | |||
Capital expenditures | $ | 149 |
| $ | 1,007 |
| $ | 1,039 |
| (3)% | |||
| Free cash flow | $ | 1,843 |
| $ | 6,033 |
| $ | 5,934 |
| 2% | |||
| Free cash flow % of revenue |
|
| 40.9% |
| 37.5% |
|
| ||||||
