Texas Instruments Stock Slips Post Q1 Results, China Restrictions Impacting Q2 Outlook

Texas Instruments Incorporated TXN reported first-quarter revenue growth of 14% year-over-year to $4.91 billion, beating the consensus of $4.74 billion.
Gross margin expanded by 496 bps to 70.2%.
The operating profit improved by 32.2% Y/Y to $2.56 billion, and the margin expanded 704 bps to 52.3%.
EPS improved 26% Y/Y to $2.35, beating the consensus of $2.18.
TXN’s Cash flow from operations for the trailing 12 months totaled $9.1 billion. Free cash flow for the same period was $6.5 billion and 34% of revenue.
2Q22 Outlook: Texas Instruments expects revenue of $4.20 billion to $4.80 billion, vs. a consensus of $4.94 billion, and earnings per share of $1.84 to $2.26, vs. a consensus of $2.27.
The company states that this outlook comprehends an impact due to reduced demand from COVID-19 restrictions in China.
Price Action: TXN shares are trading lower by 5.01% at $160 during the post-market session on Tuesday.

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