Texas Instruments Inc. (NASDAQ: TXN | TXN Price Prediction) released fourth-quarter financial results after markets closed Wednesday. The firm said that it had $1.11 in earnings per share (EPS) and $3.35 billion in revenue, compared with consensus estimates that called for $1.02 in EPS and $3.22 billion in revenue. The same period from last year had $1.27 in EPS and $3.72 billion in revenue.
Overall, revenue decreased 10% from the same quarter a year ago as most markets showed signs of stabilizing. In the core businesses, analog revenue declined 5% and embedded processing declined 20% from the same quarter a year ago.
Looking ahead to the first quarter, the outlook calls for revenue in the range of $3.12 billion to $3.38 billion, and EPS between $0.96 and $1.14, which includes an estimated $20 million discrete tax benefit. Consensus estimates are calling for $1.03 in EPS and $3.2 billion in revenue.
Texas Instruments returned $6 billion to shareholders in 2019 through stock repurchases and dividends. For the year, dividends represented 52% of free cash flow, underscoring their sustainability. Together, the stock repurchases and dividends reflect management’s continued commitment to return all free cash flow to shareholders.
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Rich Templeton, board chair, president and CEO, commented:
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.
Shares of Texas Instruments closed Wednesday at $133.34, with a 52-week range of $94.81 to $135.69. The consensus analyst price target is $129.00. Following the announcement, the stock was relatively unchanged at $132.80 in the after-hours session.
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