Summary
Texas Instruments Inc. (TXN) reported its third-quarter and year-to-date results for the period ending September 29, 2024. For the third quarter, revenue stood at $4.15 billion, a decrease of 8% year-over-year, while net income was $1.36 billion, translating to diluted EPS of $1.47. This marks a decline from the prior year's comparable period, primarily driven by lower revenues in the Embedded Processing segment, which saw a 27% decrease year-over-year, and a 4% decrease in the Analog segment. For the nine-month period, revenue declined 13% to $11.63 billion, with net income falling to $3.59 billion and diluted EPS at $3.89. The company highlights a strong cash flow from operations, demonstrating the resilience of its business model and manufacturing capabilities. Despite revenue headwinds, TXN continues to invest in its long-term competitive advantages, including significant capital expenditures for manufacturing capacity expansion and a commitment to returning capital to shareholders through dividends and share repurchases. The company also noted a positive impact from the U.S. CHIPS and Science Act, contributing to its financial position.
Financial Highlights
52 data points| Revenue | $4.15B |
| Cost of Revenue | $1.68B |
| Gross Profit | $2.47B |
| R&D Expenses | $492.00M |
| SG&A Expenses | $428.00M |
| Operating Income | $1.55B |
| Net Income | $1.36B |
| EPS (Basic) | $1.48 |
| EPS (Diluted) | $1.47 |
| Shares Outstanding (Basic) | 913.00M |
| Shares Outstanding (Diluted) | 920.00M |
Key Highlights
- 1Third-quarter revenue was $4.15 billion, down 8% year-over-year, primarily due to declines in Embedded Processing (-27%) and Analog (-4%) segments.
- 2Net income for the third quarter was $1.36 billion, resulting in diluted EPS of $1.47, compared to $1.85 in the prior year's quarter.
- 3For the first nine months of 2024, revenue decreased by 13% to $11.63 billion, with net income falling to $3.59 billion.
- 4The company reported strong cash flow from operations of $6.2 billion for the trailing twelve months, underscoring the strength of its business model.
- 5Free cash flow for the trailing twelve months was $1.5 billion.
- 6TXN continues significant capital expenditures, investing $3.63 billion in the first nine months of 2024, primarily for manufacturing capacity expansion.
- 7The company announced a 5% dividend increase, marking 21 consecutive years of dividend increases, and continued its share repurchase program.