Group 1: Earnings Performance - Texas Instruments reported quarterly earnings of $1.30 per share, exceeding the Zacks Consensus Estimate of $1.19 per share, but down from $1.49 per share a year ago, representing an earnings surprise of 9.24% [1] - The company posted revenues of $4.01 billion for the quarter, surpassing the Zacks Consensus Estimate by 3.87%, although this is a decrease from year-ago revenues of $4.08 billion [2] - Over the last four quarters, Texas Instruments has consistently surpassed consensus EPS estimates and revenue estimates [2] Group 2: Stock Performance and Outlook - Texas Instruments shares have increased by approximately 5.1% since the beginning of the year, outperforming the S&P 500's gain of 3.5% [3] - The future stock price movement will largely depend on management's commentary during the earnings call and the earnings outlook [4][6] - The current consensus EPS estimate for the upcoming quarter is $1.16 on revenues of $3.86 billion, and for the current fiscal year, it is $5.70 on revenues of $17.07 billion [7] Group 3: Industry Context - The Semiconductor - General industry, to which Texas Instruments belongs, is currently ranked in the bottom 23% of over 250 Zacks industries, indicating potential challenges ahead [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact Texas Instruments' stock performance [5]

Core Insights - Texas Instruments reported fourth-quarter earnings that exceeded expectations, with an EPS of $1.30 against an estimate of $1.21 and revenue of $4.01 billion compared to expectations of $3.88 billion [1][2][3] - Despite surpassing projections, the company experienced a year-over-year revenue decline of 1.7%, indicating a challenging quarter [2][3] Financial Performance - The fourth-quarter metrics included a 12.8% decrease in EPS from $1.49 in Q4 2023 to $1.30 in Q4 2024 [3] - Revenue fell from $4.08 billion in Q4 2023 to $4.01 billion in Q4 2024, marking a 1.7% decline [3] - Operating profit decreased by 10.2% year-over-year, from $1.53 billion to $1.38 billion [3] - Net income also saw a decline of 12.1%, dropping from $1.37 billion to $1.21 billion [3] - Free cash flow significantly decreased by 40.3%, from $1.35 billion to $806 million [3] Business Overview - Texas Instruments primarily generates revenue from two segments: Analog and Embedded Processing, with the Analog segment contributing 77% of full-year revenue in 2024 [4] - The company utilizes a 300mm wafer fabrication process, reducing production costs by approximately 40% compared to older technologies [4] - TI has focused on capital allocation to ensure steady free cash flow, investing in R&D and expanding manufacturing capacity [5] Segment Performance - The Embedded Processing segment faced a significant revenue decline of 18%, down to $613 million, while the Analog segment experienced modest growth of 2% [6] - Revenue from the "Other" category grew by 7%, indicating resilience in certain areas [6] Operational Challenges - Texas Instruments reported increased inventory levels of $4.5 billion, equating to 244 days of inventory, up from 225 days in the previous year [7] - The company noted solid demand in China for automotive electronics, suggesting pockets of market strength despite operational challenges [7] Shareholder Returns - Over the past year, Texas Instruments distributed $5.7 billion through dividends and share buybacks, with dividends increasing by 5%, marking the 21st consecutive year of rises [8] - The company’s capital allocation strategy reflects its commitment to maintaining a competitive position in the semiconductor industry [9] Future Outlook - For the first quarter of 2025, Texas Instruments anticipates revenue between $3.74 billion and $4.06 billion, with EPS expected to range from $0.94 to $1.16 [11] - Management projects an effective tax rate around 12%, indicating an understanding of current market conditions and anticipated short-term challenges [11]

Group 1 - Texas Instruments reported fourth-quarter revenue of $4.01 billion, a 2% decrease year-over-year, but above analyst consensus [1] - The company's net income for the fourth quarter was $1.21 billion, or $1.30 per share, down from $1.37 billion, or $1.49 per share, a year earlier, and also exceeded projections [1] - The earnings outlook for the first quarter is anticipated to be between 94 cents and $1.16 per share, which is below the $1.17 expected by analysts [2] Group 2 - Following the earnings report, shares of Texas Instruments fell nearly 4% in extended trading [2] - Despite the recent drop, shares had increased approximately 20% over the past year leading up to Thursday's close [2]

Financial Performance - Q4 2024 revenue was $4.01 billion, a decrease of 2% year-over-year and 3% sequentially[2] - Net income for Q4 2024 was $1.21 billion, down 12% from $1.37 billion in Q4 2023[4] - Earnings per share (EPS) for Q4 2024 was $1.30, a decline of 13% compared to $1.49 in the same quarter last year[4] - Total revenue for 2024 was $15,641 million, down 10% from $17,519 million in 2023[21] Cash Flow and Shareholder Returns - Cash flow from operations for the trailing 12 months was $6.3 billion, with free cash flow at $1.5 billion[2] - Total cash returned to shareholders in the trailing 12 months was $5.7 billion, including $4.8 billion in capital expenditures[2] - Dividends paid in the trailing 12 months amounted to $4.8 billion, reflecting a 5% increase year-over-year[6] - Free cash flow for 2024 increased by 11% to $1,498 million from $1,349 million in 2023[21] Capital Expenditures and Investments - Capital expenditures for Q4 2024 were $1.19 billion, a decrease of 5% from the previous year[5] - R&D and SG&A investments over the past 12 months totaled $3.8 billion[2] Segment Performance - Analog segment revenue for Q4 2024 was $3,174 million, a 2% increase from $3,120 million in Q4 2023[15] - Embedded Processing segment revenue for Q4 2024 decreased by 18% to $613 million from $752 million in Q4 2023[15] - Operating profit for the Analog segment in 2024 was $4,608 million, down 21% from $5,821 million in 2023[16] - Operating profit for the Embedded Processing segment in 2024 was $352 million, a 65% decrease from $1,008 million in 2023[16] Assets and Cash Position - Total assets increased to $35.51 billion in 2024, up from $32.35 billion in 2023[12] - Cash and cash equivalents at the end of Q4 2024 were $3,200 million, up from $2,964 million at the end of Q4 2023[14] Future Outlook - TI's first quarter 2025 revenue outlook is projected between $3.74 billion and $4.06 billion, with EPS guidance of $0.94 to $1.16[2] - The company expects continued challenges in the semiconductor market, particularly in industrial and automotive sectors[24]

DALLAS, Jan. 23, 2025 /PRNewswire/ -- Texas Instruments Incorporated (TI) (Nasdaq: TXN) today reported fourth quarter revenue of $4.01 billion, net income of $1.21 billion and earnings per share of $1.30. Earnings per share included a 2-cent benefit that was not in the company's original guidance. Regarding the company's performance and returns to shareholders, Haviv Ilan, TI's president and CEO, made the following comments: "Revenue decreased 3% sequentially and 2% from the same quarter a year ago. "Our c ...

Core Viewpoint - Texas Instruments is set to report earnings, with expectations of a gain of $1.19 per share on revenue of $3.86 billion, while the Whisper number suggests a gain of $1.25 per share [2] Financial Performance - The company has shown significant earnings growth from $4.26 in 2017 to $7.07 in 2023, but earnings are projected to decline to $5.10 in 2024 before increasing to $5.78 in 2025 [3] - Texas Instruments has a price to earnings (P/E) ratio of 36, which is 1.4 times that of the S&P 500 [3] Technical Analysis - The stock is currently trading approximately 10% below its 52-week high and is positioned just above its 50-day and 200-day moving averages [4] - The stock's all-time high is $220.39, and there is potential for significant movement post-earnings report [4] Company History - Texas Instruments was founded in 1930 and initially focused on seismic exploration technology before entering the semiconductor industry in 1951 [5][6] - The company has a history of innovation, including the production of the first commercial silicon transistors and the invention of the integrated circuit [6] Company Mission - The mission of Texas Instruments is to create a better world by making electronics more affordable through semiconductors [8] Company Profile - Texas Instruments designs, manufactures, and sells semiconductors, operating through Analog and Embedded Processing segments [10] - The Analog segment provides power management products and signal chain products, while the Embedded Processing segment offers microcontrollers and digital signal processors [11][12]

Earnings and Market Expectations - Texas Instruments Inc (TXN) is set to release its fourth-quarter earnings report on January 23, with significant bullish activity observed in the options market [1] - Citi analysts expect overall market expectations to decline due to weak estimates from analog chipmakers and cooling demand in personal computers [1] - The company's first-quarter forecast is anticipated to fall below expectations, driven by weak industrial demand [2] Options Market Activity - Options bulls are active, with 10,000 calls exchanged, double the intraday average volume [2] - The February 195 call is the most popular contract, with new positions being opened [2] - The options market is pricing in a next-day swing of 7.8%, more than double the 3.1% average move over the last two years [3] Stock Performance and Technical Analysis - TXN stock is up 2% at $196.20, marking its fifth win in six sessions [4] - The stock has a modest 4.5% year-to-date lead [4] - The $196 level has been a significant resistance point over the last month, with pressure from short- and long-term moving averages [4] - Historically, TXN has finished only two of its last eight post-earnings sessions higher, including a 4% gain in October [3]

Texas Instruments (TXN) is scheduled to report fourth-quarter 2024 results on Jan. 23, after market close.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.Texas Instruments expects earnings per share between $1.07 and $1.29. The Zacks Consensus Estimate for fourth-quarter earnings is pinned at $1.19 per share, which indicates a year-over-year decline of 20.1%.The company anticipates revenues between $3.70 billion and $4 billion for the fourth quarter. The Zacks Consensus Estimate is pe ...

This account is managed by Noah's Arc Capital Management. Our goal is provide Wall Street level insights to main street investors. Our research focus is mainly on 20th century stocks (old economy) undergoing a 21st century transformation, but occasionally we'll write on companies that help transform 20th century firms as well. We look for innovations in a business model that will cause a stock to change dramatically. Associated with SA contributors Thomas Potter and Elijah Buell.Analyst’s Disclosure: I/we h ...

Wall Street analysts expect Texas Instruments (TXN) to post quarterly earnings of $1.19 per share in its upcoming report, which indicates a year-over-year decline of 20.1%. Revenues are expected to be $3.86 billion, down 5.4% from the year-ago quarter.Over the past 30 days, the consensus EPS estimate for the quarter has remained unchanged. This demonstrates the covering analysts' collective reassessment of their initial projections during this period.Before a company reveals its earnings, it is vital to tak ...