Texas Instruments Q2 Profit Meets Expectations

Texas Instruments Incorporated TXN reported in-line earnings for the second quarter on Wednesday. The Dallas, Texas-based company posted quarterly net income of $696 million, or $0.65 per share, compared to $683 million, or $0.62 per share, in the year-ago period. Its revenue declined to $3.23 billion from $3.29 billion. However, analysts were expecting earnings of $0.65 per share on revenue of $3.26 billion. The average estimate among 36 Estimize users was for earnings of $0.66 per share and revenue of $3.24 billion. Its operating profit gained 3 percent year-over-year to $1.01 billion, versus $982 million in the year-ago quarter. In the past 12 months, the company returned $4.1 billion to shareholders through stock repurchases and dividends. At the end of the quarter, Texas Instruments had $3.3 billion of cash and short-term investments. Rich Templeton, TI's chairman, president and CEO said, "Our strategy to return to shareholders 100 percent of free cash flow plus proceeds from exercises of equity compensation minus net debt retirement reflects our confidence in the long-term sustainability of our business model…While strength in demand varies by end markets, our market in total is expected to be weaker year over year in the third quarter than it was in the second." For the current quarter, Texas Instruments projects revenue of $3.15 billion to $3.41 billion, versus analysts' estimates of $3.47 billion. It expects earnings of $0.62 to $0.72 per share, versus analysts' expectations of $0.75 per share. Texas Instruments shares rose 1.03 percent to $49.81 in the after-hours trading session.