Conference call on TI website at 3:30 p.m. Central time today
DALLAS, July 23, 2019 — (PRNewswire) — Texas Instruments Incorporated (TI) (NASDAQ: TXN) today reported second quarter revenue of $3.67 billion, net income of $1.31 billion and earnings per share of $1.36. Earnings per share include a 7-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 decreased 9% from the same quarter a year ago due to broad-based weakness.
- "In our core businesses, Analog revenue declined 6% and Embedded Processing declined 16% from the same quarter a year ago.
- "Our cash flow from operations of $7.2 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 and 39% 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 $8.0 billion to owners in the past 12 months through stock repurchases and dividends. Our strategy is to return all our free cash flow to owners. Over the last 12 months, our dividends represented 47% of free cash flow, underscoring their sustainability.
- "TI's third quarter outlook is for revenue in the range of $3.65 billion to $3.95 billion, and earnings per share between $1.31 and $1.53, which includes an estimated $10 million discrete tax benefit. We continue to expect our annual operating tax rate to be about 16% 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.
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|
| 2Q19 |
| 2Q18 |
| Change |
Revenue | $ | 3,668 | $ | 4,017 |
| (9)% |
Operating profit | $ | 1,506 | $ | 1,712 |
| (12)% |
Net income | $ | 1,305 | $ | 1,405 |
| (7)% |
Earnings per share | $ | 1.36 | $ | 1.40 |
| (3)% |
Cash generation
Amounts are in millions of dollars.
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|
|
|
|
| Trailing 12 Months | ||||||
|
|
|
| 2Q19 |
|
| 2Q19 |
|
| 2Q18 |
| Change |
Cash flow from operations |
| $ | 1,796 |
| $ | 7,154 |
| $ | 6,589 |
| 9% |
Capital expenditures |
| $ | 284 |
| $ | 1,228 |
| $ | 855 |
| 44% |
Free cash flow |
| $ | 1,512 |
| $ | 5,926 |
| $ | 5,734 |
| 3% |
| Free cash flow % of revenue |
|
|
|
|
| 38.9% |
|
| 36.6% |
|
|
