Summary
Texas Instruments (TXN) reported strong third-quarter 2017 results, demonstrating robust revenue growth and profitability. The company saw a significant 12% increase in revenue year-over-year, driven by solid demand in its core Analog and Embedded Processing segments, which both experienced double-digit growth. This top-line expansion, coupled with operational efficiencies and strong gross margins of 64.5%, translated into a substantial increase in operating profit and net income. Financially, TXN showcased its strong operational cash flow generation, with $4.8 billion generated over the trailing twelve months, resulting in a free cash flow of $4.2 billion (29% of revenue). The company also continued its commitment to shareholder returns, announcing a 24% dividend increase and a significant $6 billion share repurchase authorization. This positions TXN favorably with a healthy financial profile and a continued focus on returning value to its shareholders.
Financial Highlights
52 data points| Revenue | $4.12B |
| Cost of Revenue | $1.46B |
| Gross Profit | $2.66B |
| R&D Expenses | $375.00M |
| SG&A Expenses | $412.00M |
| Operating Income | $1.79B |
| Net Income | $1.28B |
| EPS (Basic) | $1.29 |
| EPS (Diluted) | $1.26 |
| Shares Outstanding (Basic) | 988.00M |
| Shares Outstanding (Diluted) | 1.01B |
Key Highlights
- 1Total revenue for the three months ended September 30, 2017, was $4,116 million, a 12% increase from $3,675 million in the same period last year.
- 2Net income for the quarter rose to $1,285 million, or $1.26 per diluted share, compared to $1,018 million, or $0.98 per diluted share, in the prior year.
- 3Gross profit margin improved to 64.5% in Q3 2017 from 62.1% in Q3 2016, indicating enhanced operational efficiency and product mix.
- 4The Analog segment revenue grew 16% and Embedded Processing revenue grew 17% year-over-year for the third quarter.
- 5Cash flow from operations for the nine months ended September 30, 2017, was $3,434 million, up from $3,227 million in the prior year.
- 6The company returned $4.3 billion to shareholders through dividends and stock repurchases in the trailing 12 months, highlighting a strong commitment to capital return.
- 7TXN announced a 24% dividend increase and a $6 billion increase in share repurchase authorization, signaling confidence in future performance and cash generation.