Texas Instruments ( (TXN) ) has released its Q4 earnings. Here is a breakdown of the information Texas Instruments presented to its investors.
Invest with Confidence:
- Follow TipRanks' Top Wall Street Analysts to uncover their success rate and average return.
- Join thousands of data-driven investors – Build your Smart Portfolio for personalized insights.
Texas Instruments Incorporated, a prominent player in the semiconductor industry, is recognized for its design, manufacturing, and sale of analog and embedded processing chips, serving markets like industrial and automotive sectors.
In its latest earnings report for the fourth quarter of 2024, Texas Instruments reported a revenue of $4.01 billion and a net income of $1.21 billion with earnings per share reaching $1.30, slightly surpassing initial guidance expectations. Despite a decline in revenue by 2% from the previous year, the company’s robust business model remains evident through substantial cash flow and shareholder returns.
Key metrics from the report highlighted a trailing 12-month cash flow from operations of $6.3 billion and free cash flow of $1.5 billion. Texas Instruments invested significantly in research and development, with $3.8 billion allocated, alongside $4.8 billion in capital expenditures. The company also returned $5.7 billion to shareholders through dividends and stock repurchases, marking substantial cash returns. Segment-wise, the Analog division posted a slight revenue increase, while Embedded Processing faced a notable decline.
Looking ahead, Texas Instruments has provided guidance for the first quarter of 2025 with revenue expectations ranging from $3.74 billion to $4.06 billion and earnings per share anticipated between $0.94 and $1.16. Management remains focused on leveraging its strategic investments to navigate market challenges and intends to maintain its effective tax rate around 12% for the year.
