Texas Instruments missed estimates on revenue and earnings last quarter, but shares rose 8.1% after-hours following strong first quarter guidance.
Revenue was US$4.42 billion, rising 10.4% year-over-year but under Zacks estimates of $4.44 billion. Earnings per share were $1.27, down from $1.30 and below estimates of $1.30.
“Our cash flow from operations of $7.2 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. Free cash flow for the same period was $2.9 billion,” said CEO Haviv Ilan.
“TI's first quarter outlook is for revenue in the range of $4.32 billion to $4.68 billion and earnings per share between $1.22 and $1.48.” LSEG estimates included revenue of $4.42 billion and earnings per share of $1.26.
Analog segment revenue was up 14% to $3.62 billion, while Embedded Processing revenue rose 8% to $662 million. Other revenue dropped by 34% to $146 million.
Revenue for its data centre segment was up 70% last quarter, Ilan said on an earnings call. This is the first quarter that it has released revenue figures for sales to data centre customers.
Operating profit last quarter increased by 7% to $1.47 billion. Net income declined 3% to $1.16 billion.
Research and development expenses during the quarter were $521 million, rising from $491 million year-over-year.
Texas Instruments (NASDAQ: TXN) shares were flat during the day before jumping 8.1% after-hours. Its market capitalisation is $178.66 billion.
