The 10-second takeaway
For the quarter ended June 30 (Q2), Texas Instruments met expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue shrank. Non-GAAP earnings per share dropped. GAAP earnings per share expanded significantly.
Margins expanded across the board.
Texas Instruments reported revenue of $3.05 billion. The 36 analysts polled by S&P Capital IQ predicted a top line of $3.06 billion on the same basis. GAAP reported sales were 8.6% lower than the prior-year quarter's $3.34 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.42. The 32 earnings estimates compiled by S&P Capital IQ averaged $0.44 per share. Non-GAAP EPS of $0.42 for Q2 were 4.5% lower than the prior-year quarter's $0.44 per share. GAAP EPS of $0.58 for Q2 were 53% higher than the prior-year quarter's $0.38 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 51.5%, 200 basis points better than the prior-year quarter. Operating margin was 23.3%, 190 basis points better than the prior-year quarter. Net margin was 21.7%, 830 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $3.21 billion. On the bottom line, the average EPS estimate is $0.56.
Next year's average estimate for revenue is $12.22 billion. The average EPS estimate is $1.85.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,535 members out of 1,663 rating the stock outperform, and 128 members rating it underperform. Among 391 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 375 give Texas Instruments a green thumbs-up, and 16 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Texas Instruments is hold, with an average price target of $35.43.
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