Texas Instruments (TI) projects third-quarter revenue between $3.94 billion and $4.26 billion, with earnings per share (EPS) expected to range from $1.24 to $1.48. The company reported second-quarter revenue of $3.8 billion, reflecting a 4 percent sequential increase but a 16 percent decline year-over-year.
Revenue Breakdown:
Analog Revenue: Declined 11 percent year-over-year
Embedded Processing Revenue: Declined 31 percent year-over-year
Texas Instruments Performance:
Industrial Market: Down low-single digits
Automotive Market: Down mid-single digits
Personal Electronics: Grew mid-teens
Communications Equipment: Up mid-single digits
Enterprise Systems: Up about 20 percent
Texas Instruments reported a second-quarter profit of $1.1 billion, driven by stabilizing demand for analog chips in markets such as personal electronics and reduced manufacturing costs. The rebound in smartphone and personal computer sales has enabled firms to clear an inventory surplus created by stockpiling during the pandemic, boosting orders for TI’s chips.
Texas Instruments CEO Haviv Ilan noted that the company’s business in China grew about 20 percent sequentially in Q2, with customers no longer managing their inventories in the region. Increased factory loadings, which help distribute fixed costs over more output, also supported profits.
Texas Instruments CFO Rafael Lizardi highlighted that lower manufacturing unit costs were achieved through increased internal manufacturing, focusing on 300-millimeter wafer technology.
In May, activist investor Elliott Investment Management urged TI to improve its free cash flow and moderate its large investments in building 300-millimeter fabs, Reuters news report said.
Capital expenditure for Texas Instruments stood at $1.06 billion, below expectations of $1.25 billion.
