Texas Instruments Q1 Earnings Beat, Q2 Outlook In-Line

Written by StockNews.com

Texas Instruments Incorporated (TXN) late Tuesday posted market-beating first quarter earnings and offered an in-line outlook for the second quarter.

The Dallas-based chipmaker reported Q1:

earnings per share (EPS) of $0.89, which was $0.06 better than the Wall Street consensus estimate of $0.83,

revenues rose 13.1% from last year to $3.4 billion, compared with analysts’ view for $3.31 billion.

Looking ahead, TXN’s outlook matched Wall Street estimates. It sees Q2:

EPS of $0.89 to $1.01, versus analysts’ $0.90 view, and

revenues of $3.4 to $3.7 billion, while Wall Street is looking for $3.5 billion.

The company commented via press release:

“Revenue increased 13% from the same quarter a year ago.

Demand for our products continued to be strong in the automotive market and continued to strengthen in the industrial market.

In our core businesses, Analog revenue grew 20% and Embedded Processing revenue grew 10% from the same quarter a year ago. Operating margin increased in both businesses.

Gross margin of 63.0% reflected the quality of our product portfolio, as well as the efficiency of our manufacturing strategy, including the benefit of 300-millimeter Analog production.”

…Year-to-date, TXN has gained 13.58%, versus a 7.18% rise in the benchmark S&P 500 index during the same period.

TXN currently has a StockNews.com POWR Rating of A (Strong Buy), and is ranked #4 of 93 stocks in the Semiconductor & Wireless Chip category.