TEXAS INSTRUMENTS INC Quarterly Report for Q1 Ended Mar 31, 2019

Summary

Texas Instruments (TXN) reported its first quarter 2019 results, showing a year-over-year revenue decrease of 5% to $3.59 billion. This decline was primarily driven by lower demand across most markets, though strength in communications equipment provided some offset. Net income also fell to $1.22 billion, resulting in diluted Earnings Per Share (EPS) of $1.26, down from $1.35 in the prior year's quarter. Despite the revenue dip, the company highlighted the continued strength of its business model, evidenced by robust cash flow from operations and significant free cash flow generation. Management emphasized its strategy of returning free cash flow to shareholders through dividends and share repurchases, with $8.0 billion returned in the trailing twelve months.

Key Highlights

• 1Revenue for the first quarter of 2019 was $3.59 billion, a 5% decrease compared to the same period in 2018, attributed to slowing demand across most markets.
• 2Net income decreased to $1.22 billion from $1.37 billion in the prior year, with diluted EPS falling to $1.26 from $1.35.
• 3Analog segment revenue saw a 2% decline, while Embedded Processing revenue experienced a significant 14% drop.
• 4Despite the revenue decrease, cash flow from operations remained strong at $1.11 billion for the quarter, and free cash flow for the trailing twelve months was $6.0 billion.
• 5The company returned $8.0 billion to shareholders through dividends and stock repurchases in the past 12 months, reflecting its commitment to capital return.
• 6Total cash and cash equivalents, including short-term investments, stood at $4.09 billion at the end of the quarter.
• 7The company issued $750 million in new long-term debt in the first quarter of 2019.

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