Conference call on TI website at 3:30 p.m. Central time today
DALLAS, Oct. 25, 2022 — (PRNewswire) — Texas Instruments Incorporated (TI) (Nasdaq: TXN) today reported third quarter revenue of $5.24 billion, net income of $2.30 billion and earnings per share of $2.47. Earnings per share included a 2-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 1% sequentially and increased 13% from the same quarter a year ago, about as expected. During the quarter we experienced expected weakness in personal electronics and expanding weakness across industrial.
- "Our cash flow from operations of $9.0 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 29% of revenue. This reflects the quality of our product portfolio, as well as the efficiency of our manufacturing strategy, including the benefit of 300-mm production.
- "Over the past 12 months we invested $3.3 billion in R&D and SG&A, invested $3.1 billion in capital expenditures and returned $7.1 billion to owners.
- "TI's fourth quarter outlook is for revenue in the range of $4.40 billion to $4.80 billion and earnings per share between $1.83 and $2.11. We continue to expect our 2022 effective tax rate to be about 14%."
Free cash flow, a non-GAAP financial measure, is cash flow from operations less capital expenditures.
Earnings summary
(In millions, except per-share amounts) |
| Q3 2022 |
| Q3 2021 |
| Change |
| ||
Revenue |
| $ | 5,241 |
| $ | 4,643 |
| 13 % |
|
Operating profit |
| $ | 2,678 |
| $ | 2,305 |
| 16 % |
|
Net income |
| $ | 2,295 |
| $ | 1,947 |
| 18 % |
|
Earnings per share |
| $ | 2.47 |
| $ | 2.07 |
| 19 % |
|
Cash generation
|
|
|
|
| Trailing 12 Months |
| |||||||
(In millions) |
| Q3 2022 |
| Q3 2022 |
| Q3 2021 |
| Change |
| |||
Cash flow from operations |
| $ | 2,766 |
| $ | 9,035 |
| $ | 8,524 |
| 6 % |
|
| Capital expenditures |
| $ | 790 |
| $ | 3,112 |
| $ | 1,392 |
| 124 % |
|
| Free cash flow |
| $ | 1,976 |
| $ | 5,923 |
| $ | 7,132 |
| (17) % |
|
| Free cash flow % of revenue |
|
|
| 29.3 % |
| 40.6 % |
|
|
| |||
