Texas Instruments shares were rising in after-hours trading after the chip maker exceeded expectations in their first quarter earnings report.
The company reported first quarter revenue of US$4.07 billion and earnings per share of $1.28, improving upon the revenue from the same time last year.
This also beats analysts' expectations of $3.91 billion in revenue and earnings per share of $1.07.
"Revenue increased 11% from the same quarter a year ago and increased 2% sequentially,” Texas Instruments president and CEO Haviv Ilan said.
“All of our markets grew sequentially with the exception of a seasonal decline in personal electronics.
"Our cash flow from operations of $6.2 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 $1.7 billion.”
Illan said the company has invested $ 3.8 billion in R&D and SG&A, invested $4.7 billion in capital expenditures and returned $6.4 billion to owners.
When looking forward to the next quarter, Illan said the company is likely to experience more growth and exceed this quarter’s earnings.
"TI's second quarter outlook is for revenue in the range of $4.17 billion to $4.53 billion and earnings per share between $1.21 and $1.47. In addition, in the second quarter, we now expect our effective tax rate to be about 12% to 13%."
Following the report, Texas Instruments shares rose around 6%. Despite this, management on the earnings call noted that they face “high uncertainty” in the current economic climate due to tariffs and geopolitics.
