Texas Instruments Incorporation (NASDAQ:TXN) shares improved substantially on reporting upbeat results for its second quarter on Tuesday.
Second-quarter revenue was $3.67 billion, net income registered at $1.31 billion and earnings per share were $1.36. EPS includes a seven-cent benefit for items that were not in the company's original guidance.
CEO Rich Templeton said "Revenue decreased 9% from the same quarter a year ago due to broad-based weakness.
"Our cash flow from operations of $7.2 billion for the trailing 12 months again underscored the strength of our business model. Free cash flow for the trailing 12 months was $5.9 billion and 39% 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.
"We have returned $8.0 billion to owners in the past 12 months through stock repurchases and dividends. Our strategy is to return all our free cash flow to owners. Over the last 12 months, our dividends represented 47% of free cash flow, underscoring their sustainability.
Templeton concluded, "TI's third quarter outlook is for revenue in the range of $3.65 billion to $3.95 billion, and earnings per share between $1.31 and $1.53, which includes an estimated $10 million discrete tax benefit. We continue to expect our annual operating tax rate to be about 16% in 2019."
With operations in more than 30 countries, Texas Instruments engineers, manufactures, test and sells analog and embedded semiconductor chips.
Shares gained $9.00, or 7.5%, to $129.07
