Texas Instruments surpassed earnings and revenue estimates last quarter on strong data centre demand for its analog chips, with shares jumping 10.5% in after-hours trading.
Earnings per share were US$1.68, up from $1.28 one year ago and above Zacks consensus estimates of $1.37. Revenue increased 19% to $4.83 billion, beating estimates by 6.8%.
“Revenue increased 9% sequentially and 19% from the same quarter a year ago with growth led by industrial and data center,” said chair, CEO, and president Haviv Ilan.
“Our cash flow from operations of $7.8 billion for the trailing 12 months again underscored the strength of our business model, the quality of our product portfolio and the benefit of 300mm production.”
Operating profit rose 37% to $1.81 billion.
Its Analog segment’s revenue was up 22% to $3.92 billion, while operating profit increased 36% to $1.64 billion.
Embedded Processing revenue rose 12% to $723 million, and operating profit surged 205% to $122 million.
The quarter’s results come as TI’s new fabrication plant in Texas ramps up production. Customers began receiving chips from the plant in December, TI has said, and it will eventually produce tens of millions of chips each day.
The company also announced a new 800-volt direct current power architecture system for data centres last quarter, in partnership with Nvidia.
For the second quarter, TI expects revenue of $5.00-5.40 billion and earnings per share of $1.77-2.05. This is above LSEG-compiled estimates of $4.86 billion in revenue and $1.57 in earnings per share.
Shares in TI (NASDAQ: TXN) closed 1.4% higher at $236.31, and soared 10.5% in after-hours trading. Its market capitalisation is $215.15 billion.
