Texas Instruments (TXN) Beats On Q2 Earnings & Revenues
Zacks Investment Research | Jul 23, 2019 09:44PM ET
Texas Instruments (NASDAQ:TXN) reported second-quarter 2019 earnings of $1.36 per share, which surpassed management’s guided range of $1.12-$1.32.
Excluding discreet tax benefit of 7 cents from the reported figure, earnings of $1.29 per share comfortably beat the Zacks Consensus Estimate of $1.21.
However, the reported figure decreased 2.8% year over year but improved 7.9% sequentially.
The company delivered revenues of $3.668 billion, outpacing the Zacks Consensus Estimate of $3.605 billion. It was also up 2.1% from the previous quarter. Further, the figure came within the company’s guided range of $3.46-$3.74 billion. However, it declined 8.7% from the year-ago quarter.
Sluggishness in the company's Analog and Embedded Processing segments owing to weak demand affected the top line.
Nevertheless, the company’s focus on innovation of product portfolio across both the segments is evident from growing research and development (R&D) spending. This continues to be a key catalyst.
Moreover, the company remains confident on portfolio strength, efficient manufacturing strategies and optimized capital allocation in growth areas. Additionally, Texas Instruments continues to increase investments in the automotive and industrial markets which are anticipated to yield good returns.
We note that shares of the company have surged 7.19% in the after-hours trading. This can primarily be attributed to better-than-expected results in the second quarter despite slowdown in chip sales globally. Further, the company’s strong outlook for third-quarter 2019 revenues is instilling investor confidence.
Coming to the price performance, Texas Instrument has gained 27.1% over a year outperforming the Zacks Investment Research
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