Conference call on TI website at 3:30 p.m. Central time today
DALLAS, Oct. 26, 2021 — (PRNewswire) — Texas Instruments Incorporated (TI) (Nasdaq: TXN) today reported third quarter revenue of $4.64 billion, net income of $1.95 billion and earnings per share of $2.07.Regarding the company's performance and returns to shareholders, Rich Templeton, TI's chairman, president and CEO, made the following comments:
- "Revenue increased 22% from the same quarter a year ago due to strong demand in industrial, automotive and personal electronics. Analog revenue grew 24% and Embedded Processing grew 13% from the same quarter a year ago.
- "Our cash flow from operations of $8.5 billion for the trailing 12 months again underscored the strength of our business model. Free cash flow for the same period was $7.1 billion and 41% 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.
- "We returned $4.2 billion to owners in the past 12 months through dividends and stock repurchases. Over the same period, our dividend represented 53% of free cash flow, underscoring its sustainability. In September, we announced we would increase our dividend by 13%.
- "TI's fourth quarter outlook is for revenue in the range of $4.22 billion to $4.58 billion and earnings per share between $1.83 and $2.07. 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.
|
| Q3 2021 |
| Q3 2020 |
| Change | ||
Revenue | $ | 4,643 |
| $ | 3,817 |
| 22% |
Operating profit | $ | 2,305 |
| $ | 1,609 |
| 43% |
Net income | $ | 1,947 |
| $ | 1,353 |
| 44% |
Earnings per share | $ | 2.07 |
| $ | 1.45 |
| 43% |
Cash generation
Amounts are in millions of dollars.
|
|
|
| Trailing 12 Months | |||||||
|
| Q3 2021 |
| Q3 2021 |
| Q3 2020 |
| Change | |||
Cash flow from operations | $ | 2,428 |
| $ | 8,524 |
| $ | 5,768 |
| 48% |
Capital expenditures | $ | 486 |
| $ | 1,392 |
| $ | 600 |
| 132% |
Free cash flow | $ | 1,942 |
| $ | 7,132 |
| $ | 5,168 |
| 38% |
| Free cash flow % of revenue |
|
| 40.6% |
| 37.6% |
|
| |||
