Conference call on TI website at 3:30 p.m. Central time today
DALLAS, Oct. 20, 2020 — (PRNewswire) — Texas Instruments Incorporated (TI) (Nasdaq: TXN) today reported third quarter revenue of $3.82 billion, net income of $1.35 billion and earnings per share of $1.45.Regarding the company's performance and returns to shareholders, Rich Templeton, TI's chairman, president and CEO, made the following comments:
- "Revenue increased 18% sequentially with notable strength from the rebound of automotive demand and growing demand from personal electronics. Revenue increased 1% from the same quarter a year ago.
- "In our core businesses, Analog revenue grew 18% and Embedded Processing grew 19% sequentially. From a year ago, Analog revenue grew 7% and Embedded Processing declined 10%.
- "Our cash flow from operations of $5.8 billion for the trailing 12 months again underscored the strength of our business model. Free cash flow for the same period was $5.2 billion and 38% of revenue. This reflects the quality of our product portfolio, as well as the efficiency of our manufacturing strategy, including the benefit of 300-millimeter Analog production.
- "We have returned $6.4 billion to owners in the past 12 months through stock repurchases and dividends. Over the same period, our dividends represented 64% of free cash flow, underscoring their sustainability. In September, we announced we would increase our dividend by 13%. Together, our stock repurchases and dividends reflect our continued commitment to return all free cash flow to our owners.
- "TI's fourth quarter outlook is for revenue in the range of $3.41 billion to $3.69 billion, and earnings per share between $1.20 and $1.40."
Free cash flow, a non-GAAP financial measure, is cash flow from operations less capital expenditures.
Earnings summary
Amounts are in millions of dollars, except per-share amounts.
|
| Q3 2020 |
| Q3 2019 |
| Change | ||
Revenue | $ | 3,817 |
| $ | 3,771 |
| 1% |
Operating profit | $ | 1,609 |
| $ | 1,589 |
| 1% |
Net income | $ | 1,353 |
| $ | 1,425 |
| (5)% |
Earnings per share | $ | 1.45 |
| $ | 1.49 |
| (3)% |
Cash generation
Amounts are in millions of dollars.
|
|
|
| Trailing 12 Months | |||||||
|
| Q3 2020 |
| Q3 2020 |
| Q3 2019 |
| Change | |||
Cash flow from operations | $ | 1,443 |
| $ | 5,768 |
| $ | 7,040 |
| (18)% |
Capital expenditures | $ | 146 |
| $ | 600 |
| $ | 1,007 |
| (40)% |
Free cash flow | $ | 1,297 |
| $ | 5,168 |
| $ | 6,033 |
| (14)% |
| Free cash flow % of revenue |
|
| 37.6% |
| 40.9% |
|
| |||
