Texas Instruments Continues to Fuel the Tech Momentum
Texas Instruments Inc. (NYSE:TXN) today announced first-quarter revenue of $3.21 billion, net income of $658 million and earnings of $.52 cents per share. Analysts’ consensus earnings estimate was $.51 per share. TXN beat by a penny.
First Quarter 2010 Key Financial Information:
- Orders were $3.64 billion, up 66 percent from a year ago and up 12 percent from the prior quarter.
- Inventory was $1.28 billion at the end of the quarter, up $178 million from a year ago and up $74 million from the prior quarter.
- Capital expenditures were $219 million in the quarter compared with $43 million a year ago and $436 million in the prior quarter. Capital expenditures in the quarter were primarily for assembly/test manufacturing equipment, as well as for analog wafer manufacturing equipment.
- The company used $504 million in the quarter to repurchase 20.6 million shares of its common stock and paid dividends of $149 million.
On a technical basis, Texas Instruments (NYSE: TXN) closed Monday at $27.16, tapping the 200-day moving average from the underside.
In terms of TXN’s 3 major product areas, here’s the breakdown:
Analog: Compared with a year ago, the increase in revenue was due to growth in all major product areas, especially high-volume analog & logic and power management products.
Embedded Processing: In both comparisons, revenue growth was primarily due to an increase in revenue from catalog products. Revenue from automotive products also increased from a year ago, although to a lesser extent.
Wireless: Compared with a year ago, revenue grew primarily due to strength in connectivity products and applications processors. Revenue from baseband products also grew from a year ago, although to a lesser extent.
For the second quarter of 2010, TI expects:
- Revenue: $3.31 – 3.59 billion
- Earnings per share: $0.56 – 0.64
TI will update its second-quarter outlook on June 8, 2010.
Disclosure: No positions in the companies mentioned.