Texas Instruments Rises on Q2 Results (TXN)
Texas Instruments (NYSE: TXN) released its fiscal second-quarter earnings results after the closing bell on Monday.
The company reported earnings per share that came in ahead of Wall Street estimates, but revenue that missed expectations. In late trade, the shares were last up better than two percent to $38.30.
Rich Templeton, TI's chairman, president and CEO, said, "Our revenue ended the quarter as expected, up [six] percent sequentially. Excluding legacy wireless, revenue grew [eight] percent; our positions in industrial and automotive markets were important contributors to the sequential growth in revenue. Additionally, backlog increased, and with it, visibility into the second half improved."
The company reported net income of $660 million or $0.58 per share, compared to $446 million or $0.38 per share, in last year's corresponding period.
Adjusted earnings per share for the quarter were $0.42. This compared to analysts' consensus EPS estimates of $0.41.
Sales for the second-quarter were down nine percent to $3.05 billion from $3.34 billion last year. This missed Wall Street consensus revenue estimates of $3.06 billion.
Gross margin improved to 51.5 percent from 49.5 percent last year. Operating margin rose to 29.7 percent from 17.9 percent in the year ago period.
Texas Instruments guided for third-quarter EPS of $0.49 to $0.57 on revenue of $3.09 billion to $3.35 billion. This compares to current analysts' consensus calling for EPS of $0.51 on revenue of $3.20 billion.
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