TXN Stock: Texas Instruments Crushes Wall Street’s Estimates

Chipmaker Texas Instruments (TXN) late Tuesday crushed Wall Street’s targets for the second quarter and guided higher for the current period. TXN stock jumped in extended trading.


The Dallas-based company earned $2.45 a share on sales of $5.21 billion in the June quarter. Analysts polled by FactSet expected TI earnings of $2.13 a share on sales of $4.65 billion. On a year-over-year basis, earnings rose 20% as sales climbed 14%.

For the current quarter, Texas Instruments forecast earnings of $2.37 a share on sales of $5.1 billion. That’s based on the midpoint of its outlook. Wall Street was modeling TI earnings of $2.26 a share on sales of $4.98 billion in the third quarter. In the year-earlier period, TI earned $2.07 a share on sales of $4.64 billion.

In a news release, Chief Executive Rich Templeton touted the company’s cash flow.

“Our cash flow from operations of $8.7 billion for the trailing 12 months again underscored the strength of our business model,” he said. “Free cash flow for the same period was $5.9 billion and 30% of revenue. This reflects the quality of our product portfolio, as well as the efficiency of our manufacturing strategy.”

TXN Stock Rises After Report

In after-hours trading on the stock market today, TXN stock rose 3% to 165.73. During the regular session Tuesday, shares fell 1.5% to close at 160.84.

TXN stock has been consolidating for the past 40 weeks with a buy point of 202.36, according to IBD MarketSmith charts.

IBD Stock Checkup ranks Texas Instruments as eighth out of 31 stocks in IBD’s semiconductor manufacturing industry group.

TXN stock has an IBD Composite Rating of 82 out of 99. IBD’s Composite Rating combines five separate proprietary ratings into one easy-to-use rating. The best growth stocks have a Composite Rating of 90 or better.

Follow Patrick Seitz on Twitter at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.


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