Texas Instruments

(Texas Instruments)

Texas Instruments Narrowly Beats on 1Q EPS, Revenue

By Features FOXBusiness

Texas Instruments (TXN) reported on Monday a 37% surge in its first-quarter profit, as fewer charges versus the year-ago period offset declining revenue.

Continue Reading Below

The company’s profit climbed to $362 million, or 32 cents a share, up from $265 million and 22 cents a share in the year-earlier period. Revenue fell 7.6% to $2.89 billion.

Analysts were looking for per-share earnings of 31 cents on revenue of $2.85 billion.

Texas Instruments’ embedded processing segment, which includes processors and microcontrollers, saw its revenue increase 4% to $561 million from $540 million, although its profit fell 80%. Sales of analog chips fell 2%, while operating earnings dropped 10%.

“Customers continued to operate in a real-time mode, maintaining minimal component inventory and ordering parts as they were needed,” Chief Executive Rich Templeton said in a statement.

Templeton added that the analog and embedded processing segment accounted for 77% of the company’s revenue, five percentage points higher than the prior year. The company’s 33% dividend hike to $1.12 a share, announced during the quarter, reflects the company’s “confidence in the long-term sustainability of our Analog and Embedded Processing business model,” he said.

Continue Reading Below

Texas Instruments also provided an outlook for the current quarter that beat the Street’s view. It expects second-quarter earnings of 37 cents a share to 45 cents and revenue of $2.93 billion to $3.17 billion.

Shares of Texas Instruments were up a penny at $4.82 in after-hours trading.