[ACCESSWIRE]
Upcoming AWS Coverage on Advanced Micro Devices Post-Earnings Results
LONDON, UK / ACCESSWIRE / February 2, 2017 / Active Wall St. announces its post-earnings coverage on Texas Instruments Inc. (NASDAQ: TXN). The Company announced its fourth quarter fiscal 2016 results on January 24, 2017. The chipmaker posted a top-line and bottom-line beat as revenue increased, driven by strong demand for its Analog and embedded chip products. Register with us now for your free membership at:
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One of Texas Instruments' competitors within the Semiconductor - Broad Line space, Advanced Micro Devices, Inc. (NASDAQ: AMD), reported on Tuesday, January 31, 2017, its earnings results for its fiscal Q4 and fiscal year ended December 31, 2016. AWS will be initiating a research report on Advanced Micro Devices in the coming days.
Today, AWS is promoting its earnings coverage on TXN; touching on AMD. Get our free coverage by signing up to:
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Earnings Reviewed
For the period ended December 31, 2016, Texas Instruments reported revenue of $3.41 billion, up 7.1% compared to revenue of $3.19 billion in Q4 2015, near the top end of the Company's guidance of $3.17 billion to $3.43 billion. Revenue also surpassed analysts' expectations of $3.31 billion.
For Q4 2016, the Company posted net income of $1.05 billion and earnings per share of $1.02, up from $836 million, or $0.80 per share, in the year earlier same quarter. Texas Instruments noted that earnings per share included a $0.14 per share benefit for items that were not in the Company's original guidance for Q4 2016. On an adjusted basis, the Company posted earnings of $0.88 per share, which exceeded Wall Street's expectations of $0.81 per share and its own forecast for earnings between $0.76 per share and $0.86 per share.
For FY16, Texas Instruments reported earnings per share of $3.48 and revenues of $13.37 billion compared to FY15 earnings per share of $2.82 and revenues of $13 billion.
Segment Results
During Q4 2016, Texas Instruments sales of Analog chips, the largest revenue contributor, improved 10% to $2.29 billion compared to revenue of $2.07 billion in Q4 2015, with robust performance for Power Management, High Performance Analog, and Silicon Valley Analog. High Volume Analog and Logic were about even on a y-o-y basis.
Embedded Processing increased 6% from the year ago comparable quarter to $744 million in Q4 2016, due to Processors and Microcontrollers. The Company's Other segment's revenue totaled $380 million down 9% compared to the year ago corresponding quarter due to royalties and custom ASIC products. For FY16, Analog was up 2% at $8.54 billion and Embedded grew 8% to $3.02 billion.
Balance Sheet & Cash Flow
During Q4 2016, Texas Instruments cash flow from operations was $1.39 billion, while inventory days were 126 days, consistent with Company's long-term model of 105 to 135 days. Capital expenditures were $110 million in Q4 2016. For FY16, cash flow from operations was $4.61 billion, up 5% from the same period a year ago. For the year, capital expenditures were $531 million, or 4% of revenue. The Company's free cash flow for FY16 was up 6% to $4.08 billion, representing 30.5% of revenue, up from 29.6% in the year ago same period.
In Q4 2016 Texas paid $499 million in dividends and repurchased $475 million of its stock for a total return of $974 million. Over the last 12 months the Company paid $1.65 billion in dividends, or 40% of trailing 12-month free cash flow.
Texas Instruments' outstanding share count has reduced by 1.5% over the past 12 months and by 42% since the end of 2004 when the Company initiated a program designed to reduce its share count. Texas Instruments noted that it has reduced shares every quarter year-on-year for 51 consecutive quarters. In Q4 2016, the Company reduced its outstanding share count to fewer than 1 billion shares.
Texas Instruments ended Q4 2016 with $3.49 billion of cash and short-term investments with its US entities owning about 80% of the cash.
On January 13, 2017, Texas Instruments' Board of Directors declared a quarterly cash dividend of $0.50 per share of common stock, payable on February 13, 2017, to stockholders of record on January 31, 2017.
New COO
On January 24, 2017, Texas Instruments announced that Brian Crutcher has been promoted to Chief Operating Officer (COO). Crutcher, 44, is a 21-year veteran of the Company and has been Executive Vice President responsible for all business and sales operations, Kilby Labs and information technology. As COO, he adds oversight of TI's global technology and manufacturing operations to his current duties.
Outlook
For Q1 2017, Texas Instruments outlook is for revenue in the range of $3.17 billion to $3.43 billion and earnings per share between $0.78 and $0.88 per share, which includes a $0.04 per share estimated tax benefit related to the new accounting standard for stock compensation. For FY17, Texas Instruments' annual effective tax rate is expected to be about 30%.
Stock Performance
On Wednesday, February 01, 2017, the stock closed the trading session at $76.27, slightly up by 0.97% from its previous closing price of $75.54. A total volume of 7.81 million shares have exchanged hands, which was higher than the 3-month average volume of 5.53 million shares. Texas Instruments' stock price advanced 9.13% in the last three months, 12.30% in the past six months, and 54.48% in the previous twelve months. Furthermore, since the start of the year, shares of the Company have gained 5.19%. The stock is trading at a PE ratio of 21.89 and has a dividend yield of 2.62%.
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