On Monday, broad-line semiconductor designer Texas Instruments
- Despite lower gross margins, the company squeezed out more net income per dollar of sales than last year.
- The weak spot here is the cash flow statement. Management just didn't have much spare capital to work with in this quarter, cramping the company's style in the expansion department.
- Still, that didn't stop another round of hefty share repurchases. It's always good to see a substantial reduction in share count, particularly in combination with better raw earnings. Texas Instruments had both this time around, signaling a certain level of management optimism.
(Figures in millions, except per-share data)
Income Statement Highlights
Avg. Est. |
Q3 2006 |
Q3 2005 |
Change |
|
---|---|---|---|---|
Sales |
$3,800 |
$3,761.0 |
$3,339.0 |
12.6% |
Net Profit |
-- |
$686.0 |
$596.0 |
15.1% |
EPS |
$0.45 |
$0.45 |
$0.36 |
25.0% |
Diluted Shares |
1,537.0 |
1,663.0 |
(7.6%) |
Get back to basics with a look at the income statement.
Margin Checkup
Q3 2006 |
Q3 2005 |
Change* |
|
---|---|---|---|
Gross Margin |
51.37% |
53.07% |
(1.70) |
Operating Margin |
24.73% |
22.79% |
1.94 |
Net Margin |
18.24% |
17.85% |
0.39 |
Margins are the earnings engine. See how they work.
Balance Sheet Highlights
Assets |
Q3 2006 |
Q3 2005 |
Change |
---|---|---|---|
Cash + ST Invest. |
$4,175.0 |
$5,246.0 |
(20.4%) |
Accounts Rec. |
$2,089.0 |
$1,756.0 |
19.0% |
Inventory |
$1,491.0 |
$1,074.0 |
38.8% |
Liabilities |
Q3 2006 |
Q3 2005 |
Change |
---|---|---|---|
Accounts Payable |
$744.0 |
$755.0 |
(1.5%) |
Long-Term Debt |
$0.0 |
$55.0 |
(100.0%) |
Learn the ways of the balance sheet.
Cash Flow Highlights
Q3 2006 |
Q3 2005 |
Change |
|
---|---|---|---|
Cash From Ops. |
$419.0 |
$1,464.0 |
(71.4%) |
Capital Expenditures |
$276.0 |
$440.0 |
(37.3%) |
Free Cash Flow |
$143.0 |
$1,024.0 |
(86.0%) |
Find out why Fools always follow the money.
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Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean.
At the time of publication, Anders Bylund had no positions in companies mentioned in this story. Fool rules are here.