Texas Instruments Delivers On Q2 Earnings, Mid-Quarter Update Does Not Disappoint

Shares of Texas Instruments Incorporated TXN traded up about 3.5 percent in Monday’s after-hours session, following the announcement of the company’s second quarter results. The large cap semiconductors manufacturer reported earnings of $0.76 per share, $0.03 above the Street’s consensus of $0.73 per share. Revenue of $3.273 billion also came in slightly ahead of estimates of $3.2 billion.

For the ongoing quarter, management guided for sales in the $3.34 billionto $3.62 billion, mostly above the Street’s expectation of $3.38 billion. On the earnings side, management said it envisions EPS of $0.81 to $0.91, once again, mostly ahead of the Street’s consensus of $0.81.

Rich Templeton, Chairman, President and CEO, said that demand for the company’s products “continued to be strong in the automotive market, and grew in the industrial and communications equipment markets. Despite sequential growth, demand in the personal electronics market was down from a year ago.”

In Texas Instruments’ core businesses, “Embedded Processing revenue grew 9 percent and Analog revenue was about even with the same quarter a year ago. Operating margin increased in both businesses,” Templeton added. Finally, "Gross margin of 61.2 percent reflected the quality of our product portfolio, as well as the efficiency of our manufacturing strategy, including the benefit of 300-millimeter Analog production.”

Disclosure: Javier Hasse holds no interest in any of the securities or entities mentioned above.