Investment Rating - The report assigns a neutral investment rating for Texas Instruments (TXN) based on its performance and market conditions [3][48]. Core Insights - Texas Instruments reported Q3 FY24 revenue of $4.151 billion, a year-over-year decrease of 8% but a quarter-over-quarter increase of 8.6%, slightly above the guidance midpoint [3][6]. - The gross margin for Q3 FY24 was 59.6%, down 2.51 percentage points year-over-year but up 1.75 percentage points quarter-over-quarter, attributed to revenue growth and production optimization [3][8]. - The net profit for Q3 FY24 was $1.362 billion, reflecting a quarter-over-quarter increase of 20.85% but a year-over-year decrease of 20.30% [3][11]. - Inventory at the end of Q3 FY24 was $4.3 billion, with an increase of $190 million from the previous quarter, and inventory days increased to 231 days [3][13]. - Capital expenditures for Q3 FY24 were $1.3 billion, with total capital expenditures over the past 12 months amounting to $4.8 billion [3][14]. - Free cash flow for the past 12 months was $1.5 billion, including $220 million from investment tax credits due to the CHIPS Act [3][21]. Revenue Breakdown - The revenue from the Analog segment in Q3 FY24 was $3.223 billion, accounting for 77.6% of total revenue, with a quarter-over-quarter increase of 10.08% and a year-over-year decrease of 3.88% [3][15]. - The Embedded Processing segment generated $653 million in revenue, representing 15.7% of total revenue, with a quarter-over-quarter increase of 6.18% and a year-over-year decrease of 26.63% [3][15]. - Other businesses contributed $275 million, down 4.84% year-over-year and 1.43% quarter-over-quarter, making up 6.6% of total revenue [3][15]. End Market Performance - The industrial market showed a low single-digit decline, primarily due to customers continuing to digest inventory, while the automotive market exhibited high single-digit growth driven by the Chinese market [3][17]. - The personal electronics market grew approximately 30%, the communication equipment market increased about 25%, and the enterprise systems market grew around 20% [3][17]. - The automotive market in China has shown strong performance, with growth rates reaching 20% for two consecutive quarters, driven by the demand for electric and hybrid vehicles [3][27]. Company Guidance - For Q4 FY24, Texas Instruments provided revenue guidance in the range of $3.7 billion to $4.0 billion, with an expected EPS between $1.07 and $1.29 [3][18].

Have you assessed how the international operations of Texas Instruments (TXN) performed in the quarter ended September 2024? For this chipmaker, possessing an expansive global footprint, parsing the trends of international revenues could be critical to gauge its financial resilience and growth prospects. The global economy today is deeply interlinked, making a company's engagement with international markets a critical factor in determining its financial success and growth path. It has become essential for i ...

The large-cap semiconductor stock- Texas Instruments (NASDAQ: TXN ), noted for its expertise in analog and embedded processing chips, appears to have gotten its mojo back this year. After a disappointing 2023, where it only generated aAnalyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensati ...

NEWS HIGHLIGHTS:TI adds GaN manufacturing in Japan, quadrupling its internal GaN manufacturing capacity between its factories in the United States and Japan.TI's GaN-based semiconductors are in production and available now.TI enables the most energy-efficient, reliable and power-dense end products with the widest portfolio of integrated GaN-based power semiconductors.TI has successfully piloted the development of GaN manufacturing on 300mm wafers.DALLAS and AIZU, Japan, Oct. 24, 2024 /PRNewswire/ -- Texas I ...

Core Insights - Texas Instruments (TXN) reported Q3 2024 earnings of $1.47 per share, exceeding the Zacks Consensus Estimate by 8.1% and falling within the guided range of $1.24-$1.48 per share, although this represents a 20.5% decline year over year [1] - Revenues for TXN reached $4.15 billion, surpassing the Zacks Consensus Estimate by 1% and aligning with management's guidance of $3.94-$4.26 billion, marking an 8.4% year-over-year decrease but an 8.6% sequential increase [1] - The Personal Electronics market grew approximately 30%, Enterprise Systems increased around 20%, and Communication Equipment rose about 25%, while the automotive market saw high single-digit growth, driven by strength in the Chinese market [1] Segment Performance - The Analog segment generated revenues of $3.22 billion, accounting for 77.6% of total revenues, down 4% year over year but above the Zacks Consensus Estimate of $3.08 billion [3] - Embedded Processing revenues were $653 million, representing 15.7% of total revenues, down 26.6% year over year and missing the Zacks Consensus Estimate of $724 million [3] - Other segment revenues totaled $275 million, or 6.6% of total revenues, down 4.7% from the prior year and below the consensus mark of $288.3 million [3] Operating Metrics - TXN's gross margin was 59.6%, a contraction of 251 basis points from the previous year [4] - Selling, general and administrative expenses were $428 million, down 34 basis points year over year [4] - Research and development expenses increased to $492 million, expanding 146 basis points as a percentage of revenues [4] - The operating margin was 37.44%, down 431 basis points from the prior year [4] Financial Position - As of September 30, 2024, TXN had cash and short-term investments of $8.75 billion, down from $9.7 billion as of June 30, 2024 [5] - Long-term debt remained stable at $12.84 billion, with current debt at $1.05 billion [5] - Cash generated from operations was $1.7 billion, an increase from $1.57 billion in the previous quarter [5] - Capital expenditures were $1.3 billion, with free cash flow reported at $416 million [5] - TXN paid dividends totaling $1.19 billion and repurchased shares worth $318 million during the quarter [5] Future Guidance - For Q4 2024, TXN expects revenues between $3.70 billion and $4 billion, with the Zacks Consensus Estimate at $4.11 billion, indicating a 0.83% increase year over year [5] - Earnings per share guidance is set between $1.07 and $1.29, with the consensus at $1.36, reflecting an 8.7% decline from the previous year [6] - The effective tax rate is anticipated to be approximately 13% [6] Market Context - TXN's stock has gained 13.8% year to date, underperforming the Zacks Semiconductor – General industry, which has surged 134.8% during the same period [2]

Financial Performance - Third quarter revenue was $4.15 billion, a decrease of 8% year-over-year and an increase of 9% sequentially[59] - Net income for the third quarter was $1.36 billion, with earnings per share (EPS) of $1.47, down from $1.71 billion and $1.85 EPS in the same quarter last year[61] - Year-to-date revenue for 2024 was $11.63 billion, a decrease of 13% compared to the same period in 2023[67] - Revenue for the 12 months ended September 30, 2024, was $15,711 million, a decrease from $18,112 million in 2023[78] Cash Flow - Cash flow from operations for the trailing 12 months was $6.2 billion, with free cash flow of $1.5 billion[59] - Cash flow from operations (GAAP) for 2024 was $6,244 million, compared to $6,538 million in 2023, reflecting a 4% decrease[78] - Free cash flow (non-GAAP) for 2024 was $1,468 million, down 11% from $1,648 million in 2023[78] - Cash flow from operations as a percentage of revenue (GAAP) improved to 39.7% in 2024 from 36.1% in 2023[78] - Free cash flow as a percentage of revenue (non-GAAP) increased slightly to 9.3% in 2024 from 9.1% in 2023[78] Capital Expenditures - Capital expenditures for the first nine months of 2024 were $3.63 billion, down from $3.92 billion in the previous year[73] Dividends - The company announced a 5% increase in dividends, marking 21 consecutive years of dividend increases[74] Profitability - Operating profit margin for the third quarter was 37.4%, down from 41.7% in the same quarter last year[60] Revenue Breakdown - Embedded Processing revenue decreased by 27% year-over-year to $653 million[64] Future Expectations - The company expects to receive $6 billion to $8 billion from the U.S. Department of Treasury's investment tax credit through 2034[74] Cash Position - Total cash at the end of Q3 2024 was $8.75 billion, an increase of $177 million from the end of 2023[71]

Texas Instruments Incorporated (NASDAQ:TXN) Q3 2024 Earnings Conference Call October 22, 2024 4:30 PM ET Company Participants Dave Pahl - Head of IR Haviv Ilan - CEO Rafael Lizardi - CFO Conference Call Participants Timothy Arcuri - UBS Vivek Arya - Bank of America Securities C.J. Muse - Cantor Fitzgerald Ross Seymore - Deutsche Bank Stacy Rasgon - Bernstein Research Thomas O'Malley - Barclays Joseph Moore - Morgan Stanley William Stein - Truist Securities Tore Svanberg - Stifel Dave Pahl Welcome to the Tex ...

Texas Instruments (TXN) reported $4.15 billion in revenue for the quarter ended September 2024, representing a year-over-year decline of 8.4%. EPS of $1.47 for the same period compares to $1.80 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $4.11 billion, representing a surprise of +0.99%. The company delivered an EPS surprise of +8.09%, with the consensus EPS estimate being $1.36.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- ...

Texas Instruments (TXN) came out with quarterly earnings of $1.47 per share, beating the Zacks Consensus Estimate of $1.36 per share. This compares to earnings of $1.80 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 8.09%. A quarter ago, it was expected that this chipmaker would post earnings of $1.16 per share when it actually produced earnings of $1.22, delivering a surprise of 5.17%.Over the last four quarters, the company ...

Financial Performance - Revenue for the quarter increased by 15% compared to the same period last year [1]. - Net profit margin improved to 12%, up from 10% in the previous quarter [2]. - Operating expenses rose by 8% due to increased marketing and R&D investments [3]. Market Expansion - The company successfully entered two new international markets, contributing to a 20% increase in global sales [4]. - A new partnership was established with a leading distributor in Europe, expected to boost market share by 5% [5]. Product Development - Launched three new products in the tech segment, which are projected to generate $50 million in revenue over the next year [6]. - R&D investment increased by 25% to accelerate innovation and product differentiation [7]. Operational Efficiency - Implemented new supply chain management software, reducing logistics costs by 10% [8]. - Streamlined manufacturing processes, resulting in a 15% reduction in production time [9]. Customer Engagement - Customer satisfaction scores improved by 5 points, reaching an all-time high of 90% [10]. - Launched a new loyalty program, which has already attracted 100,000 new members [11]. Strategic Initiatives - Announced a new sustainability initiative aimed at reducing carbon emissions by 30% over the next five years [12]. - Acquired a smaller competitor to enhance market position and expand product offerings [13]. Risk Management - Identified potential risks in the supply chain and implemented contingency plans to mitigate disruptions [14]. - Increased insurance coverage to protect against unforeseen market volatility [15]. Employee Development - Introduced a new training program to enhance employee skills, resulting in a 20% increase in productivity [16]. - Employee retention rates improved by 10% due to enhanced workplace benefits and career development opportunities [17].