Texas Instruments Beats On Q2 Earnings, Issues Robust Q3 Guidance

Texas Instruments Inc TXN reported second-quarter FY21 revenue growth of 41% year-on-year to $4.58 billion, surpassing the analyst consensus of $4.35 billion.

• Strong demand in industrial, automotive, and personal electronics drove the growth.
• Analog revenue grew 42% Y/Y to $3.5 billion. It posted an operating margin of 51.3%.
• Embedded Processing revenue rose 43% Y/Y to $780 million with a 40% operating margin. 
• Other revenue increased 30% Y/Y to $336 million. The operating margin was 36.6%.
• The total operating margin expanded by 1,038 basis points to 48.3%.
• Net income rose 40% Y/Y to $1.9 billion, with the margin contracting by 40 basis points to 42.2%.
• EPS of $2.05 beat the analyst consensus of $1.82.
• Texas returned $1.1 billion to the shareholders in the form of dividends and share buybacks.
• It generated $2.1 billion in operating cash flow and held $7.4 billion in cash and equivalents.
• Outlook: Texas sees Q3 revenue of $4.40 billion - $4.76 billion, versus the analyst consensus of $4.58 billion.
•  It sees an EPS of $1.87 - $2.13 compared to the analyst consensus of $1.97.
• Price action: TXN shares traded lower by 1.79% at $184.41 in the premarket session on the last check Thursday.
• Photo by Piotr433 via Wikimedia