Conference call on TI website at 3:30 p.m. Central time today
DALLAS, Oct. 23, 2018 — (PRNewswire) — Texas Instruments Incorporated (TI) (NASDAQ: TXN) today reported third-quarter revenue of $4.26 billion, net income of $1.57 billion and earnings per share of $1.58.Regarding the company's performance and returns to shareholders, Rich Templeton, TI's chairman, president and CEO, made the following comments:
- "Revenue increased 4 percent from the same quarter a year ago; however, demand for our products slowed across most markets.
- "In our core businesses, Analog revenue grew 8 percent and Embedded Processing declined 4 percent from the same quarter a year ago.
- "Our cash flow from operations of $7.0 billion for the trailing 12 months again underscored the strength of our business model. Free cash flow for the trailing 12 months was $5.9 billion, or 37.5 percent 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 $6.2 billion to owners in the past 12 months through stock repurchases and dividends, and our strategy to return to owners all of our free cash flow remains consistent. Over the last 12 months, our dividends represented 41 percent of free cash flow, emphasizing their sustainability.
- "In September, we announced we would increase our dividend by 24 percent and also increased our share repurchase authorizations by $12 billion, which together reflect our commitment to return all free cash flow to our owners.
- "TI's fourth-quarter outlook is for revenue in the range of $3.60 billion to $3.90 billion, and earnings per share between $1.14 and $1.34. We continue to expect our ongoing annual operating tax rate to be about 20 percent in 2018 and about 16 percent starting in 2019."
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.
|
|
| 3Q18 |
| 3Q17 |
| Change |
Revenue | $ | 4,261 | $ | 4,116 |
| 4% |
Operating profit | $ | 1,937 | $ | 1,788 |
| 8% |
Net income | $ | 1,570 | $ | 1,285 |
| 22% |
Earnings per share | $ | 1.58 | $ | 1.26 |
| 25% |
Cash generation
Amounts are in millions of dollars.
|
|
|
|
|
| Trailing 12 Months | ||||||
|
|
|
| 3Q18 |
|
| 3Q18 |
|
| 3Q17 |
| Change |
Cash flow from operations |
| $ | 2,106 |
| $ | 6,973 |
| $ | 4,821 |
| 45% |
Capital expenditures |
| $ | 370 |
| $ | 1,039 |
| $ | 574 |
| 81% |
| Free cash flow |
| $ | 1,736 |
| $ | 5,934 |
| $ | 4,247 |
| 40% |
| Free cash flow % of revenue |
|
|
|
|
| 37.5% |
|
| 29.0% |
|
|
