Texas Instruments Incorporated (NASDAQ:TXN) reported stronger-than-expected results for its third quarter.
The Dallas-based company told investors Tuesday third quarter revenue were $3.82 billion, net income of $1.35 billion and earnings per share of $1.45.
Regarding the company's performance and returns to shareholders, CEO Rich Templeton, commented: "Revenue increased 18% sequentially with notable strength from the rebound of automotive demand and growing demand from personal electronics. Revenue increased 1% from the same quarter a year ago.
"Our cash flow from operations of $5.8 billion for the trailing 12 months again underscored the strength of our business model. Free cash flow for the same period was $5.2 billion and 38% of revenue. This reflects the quality of our product portfolio, as well as the efficiency of our manufacturing strategy, including the benefit of 300-millimeter Analog production."
The company also boasted returning $6.4 billion to owners in the past 12 months through stock repurchases and dividends. Over the same period, dividends represented 64% of free cash flow, underscoring their sustainability. In September, Texas Instruments announced it would increase our dividend by 13%.
Templeton also said TI's fourth-quarter outlook is for revenue in the range of $3.41 billion to $3.69 billion, and earnings per share between $1.20 and $1.40.
He concludes, "We believe that free cash flow and the associated ratios provide insight into our liquidity, our cash-generating capability and the amount of cash potentially available to return to shareholders, as well as insight into our financial performance. These non-GAAP measures are supplemental to the comparable GAAP measures."
Shares in TXN opened Wednesday faltered $4.64, or 3.1%, to $146.19.
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