Technology

Texas Instruments Earnings, Revenues Solid; Soft Q1 Revenue Outlook Hurts

Paul Ausick

Published: January 24, 2017 5:03 pm

Last Updated: January 12, 2020 3:34 pm

Texas Instruments Inc. (NASDAQ: TXN) reported fourth-quarter and full-year 2016 results after markets closed Tuesday. The semiconductor maker reported diluted earnings per share (EPS) of $1.02 on revenues of $3.41 billion. In the same period last year the company reported EPS of $0.80 on revenues of $3.19 billion. The consensus estimates called for EPS of $0.82 on revenues of $3.32 billion.

For the full year the company reported EPS of $3.48 and revenues of $13.37 billion compared with 2015 EPS of $2.82 and revenues of $13 billion. Analysts expected EPS of $3.16 and revenues of $13.28 billion.

TI has paid out $1.65 billion in dividends for the trailing 12 months, an increase of 14% compared with the same period ending in December of 2015. TI said it has returned $3.8 billion to shareholders in 2016 through dividends and stock buybacks.

The company’s quarterly net income of $1.05 billion is 25% higher than last year’s net income of $836 million, and operating profit of $1.32 billion is 16% above the $1.11 billion reported in the fourth quarter of last year.

For the first quarter of 2017, TI’s outlook calls for revenue in the range of $3.17 billion to $3.43 billion, and EPS between $0.78 and $0.88. For the full 2016 fiscal year, the company’s annual effective tax rate is expected to be about 30%, unchanged from previous guidance.

The consensus first-quarter estimates call for $3.21 billion in revenue and EPS of $0.75. For the full year, consensus estimates call for $13.71 billion in revenue and EPS of $3.43.

Free cash flow for the year totaled $4.1 billion, up 29.6% compared with 2015’s free cash flow.

Shares traded down about 0.0.6% at $76.65 in after-hours trading after closing the regular session at $77.08, up about 1.8% for the day. The 52-week range is $49.10 to $77.32, and the high was posted Tuesday afternoon. Prior to earnings release the 12-month consensus price target on the stock was $76.54.