TI(US:TXN) Huachuang Securities·2024-05-09 08:02Investment Rating - The report does not explicitly state an investment rating for Texas Instruments (TXN) Core Insights - Texas Instruments reported Q1 2024 revenue of $3.661 billion, a year-over-year decrease of 16.40% and a quarter-over-quarter decrease of 10.20%, exceeding the guidance midpoint of $3.450-3.750 billion [2][3] - The gross margin for Q1 2024 was 57.2%, down 8.1 percentage points year-over-year and 2.4 percentage points quarter-over-quarter, primarily due to revenue decline, lower capacity utilization, and increased production costs related to planned capacity expansion [3][7] - Net profit for Q1 2024 was $1.105 billion, representing a 35.3% year-over-year decline, with earnings per share (EPS) of $1.20, which included an unexpected $0.10 gain from the sale of a property [3][7][17] Summary by Sections Overall Revenue Situation - Q1 2024 revenue was $3.661 billion, with a gross margin of 57.2% and net profit of $1.105 billion [3][7] - The revenue decline was attributed to reduced sales and increased production costs, leading to a gross margin drop of 820 basis points [3][7] Capital Operations - Operating cash flow for Q1 was $1 billion, with a cumulative total of $6.3 billion over the past 12 months [8][17] - Capital expenditures for Q1 were $1.2 billion, totaling $5.3 billion over the past year, with $3.7 billion allocated to R&D and SG&A [8][17] - The company returned $4.8 billion to shareholders over the past year, with $1.2 billion in dividends for Q1 [8][17] CAPEX - Capital expenditures for Q1 2024 were $1.2 billion, with a cumulative total of $5.3 billion over the past 12 months [9] Inventory - As of the end of Q1 2024, inventory stood at $4.1 billion, an increase of $84 million quarter-over-quarter, with inventory turnover days rising to 235 days [9][17] Revenue by Business Segments - Analog business segment revenue for Q1 was $2.836 billion, accounting for 77.5% of total revenue, with a year-over-year decline of 13.8% [10][13] - Embedded Processing segment revenue was $652 million, representing 17.8% of total revenue, down 21.6% year-over-year [11][13] - Other business segment revenue was $173 million, making up 4.7% of total revenue, with a year-over-year decline of 32.9% [12][13] End Market - Industrial market demand continued to decline in Q1, with a year-over-year drop of approximately 25% [14][26] - Automotive market demand showed a slight decline, while personal electronics experienced modest growth [14][26] - Communication equipment market saw a significant decline of about 50% year-over-year [14][26] Q2 Company Performance Guidance - For Q2 2024, the revenue guidance is set between $3.650-3.950 billion, with an EPS range of $1.05-1.25 [15][17] - The midpoint of the revenue guidance represents a quarter-over-quarter increase of 3.8% but a year-over-year decrease of 16.13% [15]