The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Texas Instruments beat slightly on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank slightly and GAAP earnings per share grew significantly.
Gross margins expanded, operating margins shrank, net margins increased.
Texas Instruments logged revenue of $3.39 billion. The 34 analysts polled by S&P Capital IQ wanted to see revenue of $3.34 billion on the same basis. GAAP reported sales were 2.2% lower than the prior-year quarter's $3.47 billion.
EPS came in at $0.67. The 32 earnings estimates compiled by S&P Capital IQ anticipated $0.46 per share. GAAP EPS of $0.67 for Q3 were 31% higher than the prior-year quarter's $0.51 per share.
For the quarter, gross margin was 51.3%, 80 basis points better than the prior-year quarter. Operating margin was 24.3%, 360 basis points worse than the prior-year quarter. Net margin was 23.1%, 580 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $3.22 billion. On the bottom line, the average EPS estimate is $0.42.
Next year's average estimate for revenue is $13.02 billion. The average EPS estimate is $1.63.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 1,531 members out of 1,655 rating the stock outperform, and 124 members rating it underperform. Among 349 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 323 give Texas Instruments a green thumbs-up, and 26 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 $31.34.
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