Texas Instruments Incorporated reported first quarter revenue of $3.66 billion, net income of $1.11 billion and earnings per share of $1.20. Earnings per share included a 10-cent benefit for items that were not in the company’s original guidance.
Regarding the company’s performance and returns to shareholders, Haviv Ilan, TI’s president and CEO, made the following comments:
- “Revenue decreased 16% from the same quarter a year ago and 10% sequentially, as revenue declined across all end markets.
- “Our cash flow from operations of $6.3 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 $940 million.
- “Over the past 12 months we invested $3.7 billion in R&D and SG&A, invested $5.3 billion in capital expenditures and returned $4.8 billion to owners.
- “TI’s second quarter outlook is for revenue in the range of $3.65 billion to $3.95 billion and earnings per share between $1.05 and $1.25. We continue to expect our effective tax rate to be about 13%.”
Free cash flow, a non-GAAP financial measure, is cash flow from operations less capital expenditures.
Earnings summary
(In millions, except per-share amounts) | Q1 2024 | Q1 2023 | Change | |||||
Revenue | $ | 3,661 | $ | 4,379 | (16) % | |||
Operating profit | $ | 1,286 | $ | 1,934 | (34) % | |||
Net income | $ | 1,105 | $ | 1,708 | (35) % | |||
Earnings per share | $ | 1.20 | $ | 1.85 | (35) % |
Cash generation
Trailing 12 Months | |||||||||||
(In millions) | Q1 2024 | Q1 2024 | Q1 2023 | Change | |||||||
Cash flow from operations | $ | 1,017 | $ | 6,277 | $ | 7,736 | (19) % | ||||
Capital expenditures | $ | 1,248 | $ | 5,337 | $ | 3,336 | 60 % | ||||
Free cash flow | $ | (231) | $ | 940 | $ | 4,400 | (79) % | ||||
Free cash flow % of revenue | 5.6 % | 22.6 % |
Cash return
Trailing 12 Months | |||||||||||
(In millions) | Q1 2024 | Q1 2024 | Q1 2023 | Change | |||||||
Dividends paid | $ | 1,183 | $ | 4,615 | $ | 4,359 | 6 % | ||||
Stock repurchases | $ | 3 | $ | 193 | $ | 3,129 | (94) % | ||||
Total cash returned | $ | 1,186 | $ | 4,808 | $ | 7,488 | (36) % |
Original – Texas Instruments