Texas Instruments beats Q2 earnings expectations, sees growth in some markets, decline in others

From Nasdaq: 2024-07-24 12:30:00

Texas Instruments (TXN) reported second-quarter 2024 earnings of $1.22 per share, exceeding the Zacks Consensus Estimate by 5.2% and beating the guided range of $1.05-$1.16. Revenues of $3.82 billion also surpassed expectations by 0.6%. Sequentially, personal electronics, communication equipment, and enterprise systems markets saw growth, while the automotive and industrial markets declined. The stock has gained 18.1% year-to-date, but investments in growth avenues may drive optimism.

In detail, the Analog segment generated $2.93 billion in revenues, down 11% year over year, while the Embedded Processing segment saw revenues of $615 million, a 31% decrease from the prior year. The Other segment reported revenues of $279 million, down 22% year over year. Operating details showed a gross margin contraction of 640 basis points, with operating margin at 32.7%. Cash and short-term investments were at $9.7 billion, with long-term debt at $12.842 billion.

For the third quarter of 2024, TXN expects revenues between $3.94 billion and $4.26 billion, with earnings anticipated to fall within $1.24-$1.48 per share. The effective tax rate is expected to be around 13%. The company currently holds a Zacks Rank #4 (Sell), with Arista Networks (ANET) sporting a Zacks Rank #1 (Strong Buy), while Badger Meter (BMI) and Apple (AAPL) have a Zacks Rank #2 (Buy) each. Shares of the companies have shown positive growth in the year-to-date period, with long-term earnings growth projections for each.

Texas Instruments’ strong performance in the face of market challenges positions it well for continued growth and innovation. With a focus on established growth avenues and a solid financial position, the company remains a compelling investment opportunity with potential for significant returns in the future.



Read more at Nasdaq: Texas Instruments (TXN) Q2 Earnings Beat, Revenues Fall Y/Y