- Texas Instruments forecasted its first-quarter earnings per share (EPS) to be between $0.94 and $1.16, missing the estimate of $1.17.
- Projected first-quarter revenue is set to range from $3.74 billion to $4.06 billion, close to the estimate of $3.88 billion.
- Fourth-quarter EPS was $1.30, down from $1.49 year-over-year (y/y), but above the estimate of $1.21.
- Fourth-quarter revenue was $4.01 billion, a decrease of 1.7% y/y but above the $3.86 billion estimate.
- Analog revenue increased by 1.7% y/y to $3.17 billion, surpassing the $3.07 billion estimate.
- Embedded processing revenue fell 18% y/y to $613 million, below the forecasted $620.6 million.
- Other revenue rose 7.3% y/y to $220 million, but was below the $233 million estimate.
- Operating profit decreased by 10% y/y to $1.38 billion, but exceeded the $1.3 billion estimate.
- Capital expenditure was $1.19 billion, an increase of 3.8% y/y, slightly below the $1.3 billion projection.
- Free cash flow increased by 3.9% y/y to $806 million, surpassing the estimate of $613.7 million.
- R&D expenses were $491 million, up by 6.7% y/y, coming in slightly below the projected $498.2 million.
- Cash and cash equivalents grew by 8% y/y to $3.20 billion, significantly higher than the $2.28 billion estimate.
- The company anticipates a 12% effective tax rate for 2025.
- Shares rose by 2.6% in post-market trading, reaching $205.76 on light trading volume.
Texas Instruments on Smartkarma
Analysts on Smartkarma have provided varied insights on Texas Instruments Incorporated. Baptista Research highlighted the industrial and automotive market recovery as potential drivers, with revenue rising 9% sequentially but declining 8% year-over-year. Douglas O’Laughlin discussed a rebound in almost all end markets, especially in China, for Texas Instruments. However, Nicolas Baratte expressed a more bearish sentiment, noting a small beat in 3Q24 earnings but uninspiring 4Q guidance, leading to concerns about the stock being overvalued.
Furthermore, Baptista Research also examined the China revival for Texas Instruments, reporting a mixed Q2 performance with revenue increasing sequentially but declining year-over-year. This contrast in performances and sentiments from various analysts showcases the complexity of Texas Instruments‘ current market positioning and future outlook.
A look at Texas Instruments Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 4 | |
| Growth | 3 | |
| Resilience | 3 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 3.0 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Based on the Smartkarma Smart Scores, Texas Instruments has received a mixed outlook for its long-term prospects. While the company scores well in areas such as Dividend and Resilience, it falls behind in terms of Value and Growth. With a score of 4 for Dividend, investors seeking income may find Texas Instruments appealing due to its strong dividend offerings. The company’s resilience, with a score of 3, indicates that it has the ability to withstand market fluctuations. However, its lower scores in Value and Growth suggest that there may be limitations in terms of the company’s growth potential and current value.
Overall, Texas Instruments Incorporated operates as a semiconductor design and manufacturing company, focusing on analog ICs and embedded processors. With a global presence in terms of manufacturing and sales operations, the company holds a significant position in the semiconductor industry. Investors looking at Texas Instruments should consider its strengths in dividends and resilience, while also being mindful of its scores in value and growth as they assess the company’s long-term outlook.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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