Conference call on TI website at 3:30 p.m. Central time today
DALLAS, July 21, 2020 — (PRNewswire) — Texas Instruments Incorporated (TI) (Nasdaq: TXN) today reported second quarter revenue of $3.24 billion, net income of $1.38 billion and earnings per share of $1.48. Earnings per share include a 33-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 12% from the same quarter a year ago, driven primarily by weakness in the automotive market.
- "In our core businesses, Analog revenue declined 4% and Embedded Processing declined 31% from the same quarter a year ago. Analog and Embedded Processing both had positive sequential growth in the second quarter excluding the automotive market.
- "Our cash flow from operations of $6.3 billion for the trailing 12 months again underscored the strength of our business model. Free cash flow for the same period was $5.7 billion and 42% 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 $6.7 billion to owners in the past 12 months through stock repurchases and dividends. Over the same period, our dividends represented 56% of free cash flow, underscoring their sustainability. Together, our stock repurchases and dividends reflect our continued commitment to return all free cash flow to our owners.
- "TI's third quarter outlook is for revenue in the range of $3.26 billion to $3.54 billion, and earnings per share between $1.14 and $1.34."
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.
| Q2 2020 |
| Q2 2019 |
| Change | |||
Revenue | $ | 3,239 |
| $ | 3,668 |
| (12)% | |
Operating profit | $ | 1,228 |
| $ | 1,506 |
| (18)% | |
Net income | $ | 1,380 |
| $ | 1,305 |
| 6% | |
Earnings per share | $ | 1.48 |
| $ | 1.36 |
| 9% |
Cash generation
Amounts are in millions of dollars.
|
|
| Trailing 12 Months | |||||||||||
| Q2 2020 |
| Q2 2020 |
| Q2 2019 |
| Change | |||||||
Cash flow from operations | $ | 1,720 |
| $ | 6,317 |
| $ | 7,154 |
| (12)% | ||||
Capital expenditures | $ | 130 |
| $ | 603 |
| $ | 1,228 |
| (51)% | ||||
Free cash flow | $ | 1,590 |
| $ | 5,714 |
| $ | 5,926 |
| (4)% | ||||
Free cash flow % of revenue |
|
| 41.7% |
| 38.9% |
|
|