Texas Instruments Stock Gains Following Earnings, Revenue Beat
2022.07.27 00:38
Texas Instruments (TXN) Stock Gains Following Earnings, Revenue Beat
By Sam Boughedda
Texas Instruments (NASDAQ:TXN) shares climbed in extended trading after the company posted earnings for its second quarter, beating analyst profit and revenue expectations.
TXN posted earnings of $2.45 per share, $0.32 better than expectations of $2.13. In addition, revenue for the quarter came in at $5.21 billion, beating consensus expectations of $4.65 billion.
The semiconductor company’s revenue grew 14% compared to the same period last year, with the company putting it down to the growth across markets.
“Our cash flow from operations of $8.7 billion for the trailing 12 months again underscored the strength of our business model. Free cash flow for the same period was $5.9 billion and 30% 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 production,” stated Rich Templeton, the company’s chairman, president, and CEO. “Over the past 12 months, we invested $3.2 billion in R&D and SG&A, invested $2.8 billion in capital expenditures, and returned $6.2 billion to owners.”
Looking ahead, Texas Instruments sees third-quarter earnings per share between $2.23 and $2.51, with revenue in the range of $4.90 billion to $5.30 billion. It expects its 2022 effective tax rate to be about 14%.
Texas Instruments rose more than 4% after-hours. However, they are down 14.85% in 2022, despite gaining 5.4% in the last month.
