On July 23, 2024, Texas Instruments Inc (TXN, Financial) released its 8-K filing for the second quarter of 2024. The Dallas-based company, known for generating over 95% of its revenue from semiconductors and the remainder from its well-known calculators, reported a revenue of $3.82 billion, net income of $1.13 billion, and earnings per share (EPS) of $1.22. This EPS figure includes a 5-cent benefit from items not in the company's original guidance.
Performance Overview
Texas Instruments Inc (TXN, Financial) reported a 16% year-over-year decline in revenue, down from $4.53 billion in Q2 2023. However, the company saw a 4% sequential increase in revenue. The industrial and automotive segments continued to decline sequentially, while all other end markets experienced growth.
"Revenue decreased 16% from the same quarter a year ago and increased 4% sequentially. Industrial and automotive continued to decline sequentially, while all other end markets grew," said Haviv Ilan, TI's president and CEO.
Financial Achievements
Despite the revenue decline, Texas Instruments Inc (TXN, Financial) demonstrated strong cash flow from operations, amounting to $6.4 billion over the trailing 12 months. Free cash flow for the same period was $1.5 billion. The company invested $3.7 billion in R&D and SG&A, $5.0 billion in capital expenditures, and returned $4.9 billion to shareholders over the past 12 months.
"Our cash flow from operations of $6.4 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," Ilan added.
Income Statement Highlights
| Metric | Q2 2024 | Q2 2023 | Change |
|---|---|---|---|
| Revenue | $3,822 million | $4,531 million | (16%) |
| Operating Profit | $1,248 million | $1,972 million | (37%) |
| Net Income | $1,127 million | $1,722 million | (35%) |
| Earnings per Share | $1.22 | $1.87 | (35%) |
Balance Sheet and Cash Flow
As of June 30, 2024, Texas Instruments Inc (TXN, Financial) reported total assets of $35.05 billion, up from $30.94 billion a year ago. The company's cash and cash equivalents stood at $2.74 billion, while short-term investments were $6.95 billion. The total liabilities amounted to $17.83 billion, with long-term debt at $12.84 billion.
Outlook
For the third quarter of 2024, Texas Instruments Inc (TXN, Financial) expects revenue to be in the range of $3.94 billion to $4.26 billion and earnings per share between $1.24 and $1.48. The company continues to anticipate an effective tax rate of about 13%.
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Explore the complete 8-K earnings release (here) from Texas Instruments Inc for further details.
