Summary
Texas Instruments (TXN) reported a 16% year-over-year decline in revenue for the second quarter of 2024, reaching $3.82 billion, compared to $4.53 billion in the prior year period. This decline was primarily driven by lower revenues in the Analog and Embedded Processing segments, with Industrial and Automotive end markets continuing to contract sequentially. Net income also saw a significant decrease, falling to $1.13 billion, or $1.22 per diluted share, from $1.72 billion, or $1.87 per diluted share, in the same quarter last year. Despite the revenue and profit declines, the company highlighted its strong business model and competitive advantages, emphasizing its focus on maximizing long-term free cash flow per share. Total cash and short-term investments remained robust at $9.69 billion. The company also noted the receipt of a $312 million cash benefit from the U.S. CHIPS and Science Act investment tax credit, which helped mitigate some of the impacts of lower operating income on cash flow. Management continues to invest in R&D and capital expenditures, particularly in manufacturing capacity, expecting these to remain at elevated levels.
Financial Highlights
52 data points| Revenue | $3.82B |
| Cost of Revenue | $1.61B |
| Gross Profit | $2.21B |
| R&D Expenses | $498.00M |
| SG&A Expenses | $465.00M |
| Operating Income | $1.25B |
| Net Income | $1.13B |
| EPS (Basic) | $1.23 |
| EPS (Diluted) | $1.22 |
| Shares Outstanding (Basic) | 912.00M |
| Shares Outstanding (Diluted) | 919.00M |
Key Highlights
- 1Revenue for Q2 2024 decreased by 16% to $3.82 billion compared to $4.53 billion in Q2 2023, primarily due to declines in Analog and Embedded Processing segments.
- 2Net income for Q2 2024 decreased to $1.13 billion ($1.22 EPS) from $1.72 billion ($1.87 EPS) in Q2 2023.
- 3Gross profit margin declined to 57.8% from 64.2% year-over-year, attributed to lower revenue and higher manufacturing costs related to capacity expansions and reduced factory loadings.
- 4The company received a $312 million cash benefit from the U.S. CHIPS and Science Act investment tax credit in the first six months of 2024.
- 5Total cash and short-term investments stood at $9.69 billion as of June 30, 2024, reflecting a strong liquidity position.
- 6Capital expenditures for the first six months of 2024 were $2.31 billion, consistent with the company's strategy of investing in manufacturing capacity.
- 7Despite declining revenues, the company reiterated its strategy focused on long-term free cash flow per share growth driven by its competitive advantages and disciplined capital allocation.