The 10-second takeaway
For the quarter ended March 31 (Q1), Texas Instruments beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped. Non-GAAP earnings per share increased. GAAP earnings per share grew significantly.
Gross margins shrank, operating margins shrank, net margins grew.
Texas Instruments recorded revenue of $2.89 billion. The 33 analysts polled by S&P Capital IQ looked for revenue of $2.85 billion on the same basis. GAAP reported sales were 7.6% lower than the prior-year quarter's $3.12 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 $0.35. The 32 earnings estimates compiled by S&P Capital IQ anticipated $0.32 per share. Non-GAAP EPS of $0.35 for Q1 were 9.4% higher than the prior-year quarter's $0.32 per share. GAAP EPS of $0.32 for Q1 were 45% higher than the prior-year quarter's $0.22 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 47.6%, 210 basis points worse than the prior-year quarter. Operating margin was 17.2%, 140 basis points worse than the prior-year quarter. Net margin was 12.5%, 400 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $3.05 billion. On the bottom line, the average EPS estimate is $0.43.
Next year's average estimate for revenue is $12.22 billion. The average EPS estimate is $1.75.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 1,537 members out of 1,665 rating the stock outperform, and 128 members rating it underperform. Among 383 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 362 give Texas Instruments a green thumbs-up, and 21 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 $34.24.
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