Conference call on TI website at 3:30 p.m. Central time today
DALLAS, Jan. 24, 2023 — (PRNewswire) — Texas Instruments Incorporated (TI) (Nasdaq: TXN) today reported fourth quarter revenue of $4.67 billion, net income of $1.96 billion and earnings per share of $2.13. Earnings per share included an 11-cent benefit that was 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% sequentially and 3% from the same quarter a year ago. As we expected, our results reflect weaker demand in all end markets with the exception of automotive.
- "Our cash flow from operations of $8.7 billion for the year again underscored the strength of our business model. Free cash flow for the year was $5.9 billion and 30% of revenue. This reflects the quality of our product portfolio, as well as the efficiency of our manufacturing strategy, including the benefit of 300-mm production.
- "Over the past 12 months we invested $3.4 billion in R&D and SG&A, invested $2.8 billion in capital expenditures and returned $7.9 billion to owners.
- "TI's first quarter outlook is for revenue in the range of $4.17 billion to $4.53 billion and earnings per share between $1.64 and $1.90. We now expect our 2023 annual effective tax rate to be about 13% to 14%."
Free cash flow, a non-GAAP financial measure, is cash flow from operations less capital expenditures.
Earnings summary
(In millions, except per-share amounts) |
| Q4 2022 |
| Q4 2021 |
| Change |
Revenue |
| $ 4,670 |
| $ 4,832 |
| (3) % |
Operating profit |
| $ 2,176 |
| $ 2,503 |
| (13) % |
Net income |
| $ 1,962 |
| $ 2,138 |
| (8) % |
Earnings per share |
| $ 2.13 |
| $ 2.27 |
| (6) % |
Cash generation
|
|
|
|
| Trailing 12 Months | ||||
(In millions) |
| Q4 2022 |
| Q4 2022 |
| Q4 2021 |
| Change |
Cash flow from operations |
| $ 2,042 |
| $ 8,720 |
| $ 8,756 |
| 0 % |
Capital expenditures |
| $ 967 |
| $ 2,797 |
| $ 2,462 |
| 14 % |
| Free cash flow |
| $ 1,075 |
| $ 5,923 |
| $ 6,294 |
| (6) % |
| Free cash flow % of revenue |
|
|
| 29.6 % |
| 34.3 % |
|
|
