TI-Texas Instruments Q4 Earnings Beat, Stock Falls on Dim Guidance

Core Insights - Texas Instruments (TXN) reported better-than-expected fourth-quarter 2024 results, surpassing both the Zacks Consensus Estimate and management's guidance despite a year-over-year decline in revenues and net income [1][2]. Financial Performance - Earnings per share for Q4 2024 were $1.30, exceeding the Zacks Consensus Estimate by 9.2% and management's guidance of$ 1.07- $1.29, although this represented a 12.8% decline year-over-year [2]. - Revenues reached$ 4.01 billion, beating the Zacks Consensus Estimate by 3.5% and management's guidance of $3.70-$ 4 billion, but showed a slight decrease of 1.7% year-over-year and 3% sequentially [3]. - For the full year 2024, revenues totaled $15.64 billion, down 12.01% from the previous year but above the Zacks Consensus Estimate of$ 15.49 billion [11]. Segment Performance - The Analog segment generated $3.17 billion (79.2% of total revenues), up 2% year-over-year, exceeding the Zacks Consensus Estimate of$ 3.05 billion [6]. - Embedded Processing revenues were $613 million (15.3% of total revenues), down 18% year-over-year but above the consensus estimate of$ 576 million [6]. - Other segment revenues totaled $220 million (5.5% of total revenues), up 7% year-over-year but below the consensus mark of$ 222.7 million [7]. Operating Metrics - Gross profit declined 4.8% year-over-year to $2.31 billion, with a gross margin of 58%, contracting 200 basis points from the previous year [8]. - Operating profit fell 10% year-over-year to$ 1.38 billion, with an operating margin of 34.4%, down 320 basis points from the prior year [10]. Cash Flow and Shareholder Returns - Operating cash flow for Q4 was approximately $2 billion, with full-year 2025 operating cash flow at$ 6.32 billion [14]. - The company repurchased stocks worth $537 million and paid$ 1.24 billion in dividends during Q4 [14]. Guidance - For Q1 2025, Texas Instruments expects revenues between $3.74 billion and$ 4.06 billion, with earnings per share projected between 94 cents and $1.16 [15].