Conference call on TI website at 3:30 p.m. Central time today
DALLAS, Oct. 24, 2023 — (PRNewswire) — Texas Instruments Incorporated (TI) (Nasdaq: TXN) today reported third quarter revenue of $4.53 billion, net income of $1.71 billion and earnings per share of $1.85. Earnings per share included a 5-cent benefit for items that were not in the company's original guidance.Regarding the company's performance and returns to shareholders, Haviv Ilan, TI's president and CEO, made the following comments:
- "Revenue was flat sequentially and decreased 14% from the same quarter a year ago. During the quarter, automotive growth continued and industrial weakness broadened.
- "Our cash flow from operations of $6.5 billion for the trailing 12 months again underscored the strength of our business model, the quality of our product portfolio and the benefit of 300-mm production. Free cash flow for the same period was $1.6 billion.
- "Over the past 12 months we invested $3.7 billion in R&D and SG&A, invested $4.9 billion in capital expenditures and returned $5.6 billion to owners.
- "TI's fourth quarter outlook is for revenue in the range of $3.93 billion to $4.27 billion and earnings per share between $1.35 and $1.57. We continue to expect our 2023 effective tax rate to be about 13% to 14%."
Free cash flow, a non-GAAP financial measure, is cash flow from operations less capital expenditures.
Earnings summary
(In millions, except per-share amounts) |
| Q3 2023 |
| Q3 2022 |
| Change | ||
Revenue |
| $ | 4,532 |
| $ | 5,241 |
| (14) % |
Operating profit |
| $ | 1,892 |
| $ | 2,678 |
| (29) % |
Net income |
| $ | 1,709 |
| $ | 2,295 |
| (26) % |
Earnings per share |
| $ | 1.85 |
| $ | 2.47 |
| (25) % |
Cash generation
|
|
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|
|
| Trailing 12 Months | ||||||
(In millions) |
| Q3 2023 |
| Q3 2023 |
| Q3 2022 |
| Change | |||
Cash flow from operations |
| $ | 1,937 |
| $ | 6,538 |
| $ | 9,035 |
| (28) % |
| Capital expenditures |
| $ | 1,495 |
| $ | 4,890 |
| $ | 3,112 |
| 57 % |
| Free cash flow |
| $ | 442 |
| $ | 1,648 |
| $ | 5,923 |
| (72) % |
| Free cash flow % of revenue |
|
|
|
|
| 9.1 % |
|
| 29.3 % |
|
|
