Texas Instruments Stock Climbs On Q2 Results, Strong Forward Guidance

Texas Instruments Inc. TXN shares are trading higher after the company reported its second-quarter financial results Tuesday. Here's a look at the key figures from the report. 

The Details: Texas Instruments reported quarterly earnings of $1.22 per share which beat the analyst consensus estimate of $1.17 by 4.27%. Quarterly sales came in at $3.82 billion, in-line with the analyst consensus estimate.

“Our cash flow from operations of $6.4 billion for the trailing 12 months again underscored the strength of our business model, the quality of our product portfolio and the benefit of 300mm production. Free cash flow for the same period was $1.5 billion,” said Haviv Ilan, TI’s president and CEO.

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Texas Instruments said industrial and automotive revenues continued to decline sequentially, while all other end markets grew in the second quarter. Cash flow from operations of $6.4 billion for the trailing 12 months the company attributed to strength of its business model, the quality of its product portfolio and the benefit of 300mm production. Free cash flow for the same period was $1.5 billion.

Outlook: Texas sees third-quarter revenue in a range of $3.94 billion to $4.26 billion, versus the $3.82 billion estimate.

“We continue to expect our effective tax rate to be about 13%,” said Ilan.

TXN Price Action: According to Benzinga Pro, Texas Instruments shares are up 3.91% after-hours at $206.03 at the time of publication Tuesday.

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