The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Texas Instruments beat expectations on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank slightly, and earnings per share shrank significantly.
Margins dropped across the board.
Texas Instruments reported revenue of $3.4 billion. The 37 analysts polled by S&P Capital IQ predicted net sales of $3.3 billion. Sales were 3.0% lower than the prior-year quarter's $3.5 billion
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $0.53. The 27 earnings estimates compiled by S&P Capital IQ averaged $0.39 per share on the same basis. GAAP EPS of $0.25 for Q4 were 68% lower than the prior-year quarter's $0.78 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 45.3%, 770 basis points worse than the prior-year quarter. Operating margin was 18.4%, 1,250 basis points worse than the prior-year quarter. Net margin was 8.7%, 1,800 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $3.2 billion. On the bottom line, the average EPS estimate is $0.40.
Next year's average estimate for revenue is $13.9 billion. The average EPS estimate is $2.07.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,544 members out of 1,661 rating the stock outperform, and 117 members rating it underperform. Among 448 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 430 give Texas Instruments a green thumbs-up, and 18 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Texas Instruments is outperform, with an average price target of $32.27.
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