Conference call on TI website at 3:30 p.m. Central time today
DALLAS, April 24, 2018 — (PRNewswire) — Texas Instruments Incorporated (TI) (NASDAQ: TXN) today reported first-quarter revenue of $3.79 billion, net income of $1.37 billion and earnings per share of $1.35. Earnings per share include 14 cents in tax-related benefits not in the company's original guidance.Regarding the company's performance and returns to shareholders, Rich Templeton, TI's chairman, president and CEO, made the following comments:
- "Revenue increased 11 percent from the same quarter a year ago. Demand for our Analog and Embedded Processing products continued to be strong in the industrial and automotive markets.
- "Our cash flow from operations of $5.7 billion for the trailing 12 months again underscored the strength of our business model. Free cash flow for the trailing 12 months was up 17 percent from a year ago to $4.9 billion, or 32.1 percent 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.
- "We have returned $5.1 billion to owners in the past 12 months through stock repurchases and dividends, consistent with our strategy to return to owners all of our free cash flow. Over the last 12 months, our dividends represented 45 percent of free cash flow, emphasizing their sustainability.
- "TI's second-quarter outlook is for revenue in the range of $3.78 billion to $4.10 billion, and earnings per share between $1.19 and $1.39, which includes an estimated $10 million discrete tax benefit.
- "We now expect our ongoing annual operating tax rate to be about 16 percent starting in 2019 and 20 percent in 2018, lower than our previous expectations of 18 percent and 23 percent, respectively."
Free cash flow, a non-GAAP financial measure, is cash flow from operations less capital expenditures.
Earnings summary
Amounts are in millions of dollars, except per-share amounts.
|
|
|
1Q18 |
|
1Q17 |
|
Change |
|
Revenue |
$ |
3,789 |
$ |
3,402 |
|
11% |
|
Operating profit |
$ |
1,548 |
$ |
1,252 |
|
24% |
|
Net income |
$ |
1,366 |
$ |
997 |
|
37% |
|
Earnings per share |
$ |
1.35 |
$ |
0.97 |
|
39% |
Cash generation
Amounts are in millions of dollars.
|
|
|
|
|
|
Trailing 12 Months | ||||||
|
|
|
|
1Q18 |
|
|
1Q18 |
|
|
1Q17 |
|
Change |
|
Cash flow from operations |
|
$ |
1,112 |
|
$ |
5,680 |
|
$ |
4,756 |
|
19% |
|
Capital expenditures |
|
$ |
189 |
|
$ |
757 |
|
$ |
534 |
|
42% |
|
Free cash flow |
|
$ |
923 |
|
$ |
4,923 |
|
$ |
4,222 |
|
17% |
|
Free cash flow % of revenue |
|
|
|
|
|
32.1% |
|
|
30.7% |
|
|
