Texas Instruments Y/Y Revenues Down 10%, “Markets Stabilizing”

Texas Instruments (TXN) reported Q4 2019 earnings after the market close with revenues coming in at $3.35 billion, net income of $1.07 billion and earnings per share of $1.12.   The earnings release beat expectations but the stock is 1 percent lower in after-hours on punk guidance.

TI’s chairman, president and CEO, made the following comments:

  • Revenue decreased 10% from the same quarter a year ago as most markets showed signs of stabilizing.
  • In our core businesses, Analog revenue declined 5% and Embedded Processing declined 20% from the same quarter a year ago.
  • Our cash flow from operations of $6.6 billion for the year again underscored the strength of our business model. Free cash flow for the year was $5.8 billion
    and 40% of revenue. This reflects the quality of our product portfolio, as well as the efficiency of our manufacturing strategy, including the benefit of
    300-millimeter Analog production.
  • We returned $6.0 billion to owners in 2019 through stock repurchases and dividends. For the year, our dividends represented 52% of free cash flow,
    underscoring their sustainability. Together, our stock repurchases and dividends reflect our continued commitment to return all free cash flow to our owners.
  • TI’s first-quarter outlook is for revenue in the range of $3.12 billion to $3.38 billion, and earnings per share between $0.96 and $1.14, which includes an
    estimated $20 million discrete tax benefit. We continue to expect our 2020 annual operating tax rate to be about 15%.