TXN.O

Texas Instruments Reports Q3 2024 Financial Results

authorIntellectia.AI

2024-10-232mins

Texas Instruments Reports Q3 2024 Financial Results

Texas Instruments Incorporated (Nasdaq: TXN) announced its financial results for the third quarter of 2024, reporting a revenue of $4.15 billion and a net income of $1.36 billion, translating to earnings per share (EPS) of $1.47.

Key Financial Metrics:

Metric Q3 2024 Q3 2023 YoY Change QoQ Change Consensus Estimate
Revenue $4.15B $4.53B -8% +9% $4.12B
Net Income $1.36B $1.71B -20% N/A N/A
Earnings Per Share (EPS) $1.47 $1.85 -21% N/A $1.38

The company exceeded Wall Street expectations for both revenue and EPS, which were projected at $4.12 billion and $1.38, respectively. Despite a year-over-year decline, the sequential growth indicates a positive trend in the company's performance.

Segment Revenue Performance:

Segment Q3 2024 Revenue Q3 2023 Revenue YoY Change
Analog $3.22B $3.35B -4%
Embedded Processing $653M $890M -27%
Other $275M $289M -5%

The Analog segment showed resilience with a modest decline, while Embedded Processing faced significant challenges, reflecting a broader industry trend.

Operational Highlights:

  • Cash flow from operations over the trailing 12 months was $6.2 billion, with free cash flow at $1.5 billion.
  • The company invested $3.7 billion in R&D and SG&A, and $4.8 billion in capital expenditures over the past year.

Management Commentary:

Haviv Ilan, TI's President and CEO, highlighted the sequential growth in revenue and the strength of the company's business model, despite ongoing challenges in the industrial segment.

Shareholder Returns:

  • Dividends paid over the trailing 12 months amounted to $4.74 billion, a 5% increase from the previous year.
  • Stock repurchases totaled $457 million, reflecting a strategic approach to capital allocation.

Forward Guidance:

For Q4 2024, Texas Instruments anticipates revenue between $3.70 billion and $4.00 billion, with EPS expected to range from $1.07 to $1.29. The company maintains an effective tax rate forecast of approximately 13%.

Market Reaction:

Following the earnings release, Texas Instruments' stock experienced volatility, initially dipping in after-hours trading before rising to $197.00, reflecting investor confidence in the company's future prospects.

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