Conference call on TI website at 3:30 p.m. Central time today
DALLAS, Jan. 26, 2021 — (PRNewswire) — Texas Instruments Incorporated (TI) (Nasdaq: TXN) today reported fourth quarter revenue of $4.08 billion, net income of $1.69 billion and earnings per share of $1.80. Earnings per share included a 16-cent benefit for items that were not in the company's original guidance.Regarding the company's performance and returns to shareholders, Rich Templeton, TI's chairman, president and CEO, made the following comments:
- "Revenue increased 7% sequentially, driven by strong demand in automotive, personal electronics and industrial markets. Revenue increased 22% from the same quarter a year ago.
- "In our core businesses, Analog revenue grew 9% and Embedded Processing grew 11% sequentially. From a year ago, Analog revenue grew 25% and Embedded Processing grew 14%.
- "Our cash flow from operations of $6.1 billion for the year again underscored the strength of our business model. Free cash flow for the year was $5.5 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 returned $6.0 billion to owners in 2020 through dividends and stock repurchases. For the year, our dividend represented 62% of free cash flow, underscoring its sustainability. Together, our dividends and stock repurchases reflect our continued commitment to return all free cash flow to our owners.
- "TI's first quarter outlook is for revenue in the range of $3.79 billion to $4.11 billion and earnings per share between $1.44 and $1.66. We continue to expect our 2021 annual operating tax rate to be about 14%."
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.
|
| Q4 2020 |
| Q4 2019 |
| Change | |||||
Revenue | $ | 4,076 |
| $ | 3,350 |
| 22% | |||
Operating profit | $ | 1,813 |
| $ | 1,249 |
| 45% | |||
Net income | $ | 1,688 |
| $ | 1,070 |
| 58% | |||
Earnings per share | $ | 1.80 |
| $ | 1.12 |
| 61% | |||
Cash generation
Amounts are in millions of dollars.
|
|
|
| Trailing 12 Months | |||||||||||
|
| Q4 2020 |
| Q4 2020 |
| Q4 2019 |
| Change | |||||||
Cash flow from operations | $ | 2,125 |
| $ | 6,139 |
| $ | 6,649 |
| (8)% | ||||
Capital expenditures | $ | 212 |
| $ | 649 |
| $ | 847 |
| (23)% | ||||
Free cash flow | $ | 1,913 |
| $ | 5,490 |
| $ | 5,802 |
| (5)% | ||||
| Free cash flow % of revenue |
|
| 38.0% |
| 40.3% |
|
| |||||||
