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.
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 $0.67. 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.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
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.
Can your portfolio provide you with enough income to last through retirement? You'll need more than Texas Instruments. Learn how to maximize your investment income and "Secure Your Future With 9 Rock-Solid Dividend Stocks." Click here for instant access to this free report.
- Add Texas Instruments to My Watchlist.
Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.