Texas Instruments Shares Edge Lower After Earnings Beat, Solid Guidance

Texas Instruments checked off all the right boxes in its earnings report, but investors weren't enthused.
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Shares of Texas Instruments  (TXN) - Get Report fell after the chip maker posted revenue and earnings above expectations and strong guidance. 

The stock fell 1.6% to $131.25 a share in after-hours trading Wednesday, after having risen 1.9% in regular trading hours. 

Earnings per share for the December quarter came in at $1.12 on a GAAP basis, beating Wall Street estimates of $1.03 and falling 12% year-over-year. Revenue was $3.35 billion, beating analysts expectations of $3.25 billion and falling 10%. Analog revenue was $2.497 billion, beating estimates of $2.35 billion. Embedded processing sales were $633 million against expectations of $643 million. 

"Our cash flow from operations of $6.6 billion for the year again underscored the strength of our business model. Free cash flow for the year was $5.8 billion and 40% 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," said  CEO Rich Templeton in a statement. 

The company guided for current quarter revenue in the range of $3.21 billion to $3.38 billion, with the midpoint higher than analyst's expected range of $3.07 billion to $3.33 billion. Management expects EPS of between 96 cents and $1.14, with the midpoint just ahead of analysts estimate of $1.04. 

The stock is up 40% in the past year.