Conference call on TI website at 3:30 p.m. Central time today
DALLAS, Jan. 22, 2020 — (PRNewswire) — Texas Instruments Incorporated (TI) (Nasdaq: TXN) today reported fourth quarter revenue of $3.35 billion, net income of $1.07 billion and earnings per share of $1.12. Earnings per share include a 1-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 10% from the same quarter a year ago as most markets showed signs of stabilizing.
- "In our core businesses, Analog revenue declined 5% and Embedded Processing declined 20% from the same quarter a year ago.
- "Our cash flow from operations of $6.6 billion for the year again underscored the strength of our business model. Free cash flow for the year was $5.8 billion and 40% 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 2019 through stock repurchases and dividends. For the year, our dividends represented 52% of free cash flow, underscoring their sustainability. Together, our stock repurchases and dividends 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 $3.12 billion to $3.38 billion, and earnings per share between $0.96 and $1.14, which includes an estimated $20 million discrete tax benefit. We continue to expect our 2020 annual operating tax rate to be about 15%."
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 2019 |
| Q4 2018 |
| Change | ||
Revenue | $ | 3,350 |
| $ | 3,717 |
| (10)% |
Operating profit | $ | 1,249 |
| $ | 1,516 |
| (18)% |
Net income | $ | 1,070 |
| $ | 1,239 |
| (14)% |
Earnings per share | $ | 1.12 |
| $ | 1.27 |
| (12)% |
Cash generation
Amounts are in millions of dollars.
|
|
|
| Trailing 12 Months | ||||||||||
|
| Q4 2019 |
| Q4 2019 |
| Q4 2018 |
| Change | ||||||
Cash flow from operations | $ | 1,754 |
| $ | 6,649 |
| $ | 7,189 |
| (8)% | |||
Capital expenditures | $ | 163 |
| $ | 847 |
| $ | 1,131 |
| (25)% | |||
| Free cash flow | $ | 1,591 |
| $ | 5,802 |
| $ | 6,058 |
| (4)% | |||
| Free cash flow % of revenue |
|
| 40.3% |
| 38.4% |
|
| ||||||
