Texas Instruments slips even as Q2 results, guidance top estimates

Texas Instruments (TXN) shares fell 1.1% in extended trading on Wednesday after the analog chipmaker reported second-quarter results and guidance that topped Wall Street's estimates. 

For the period ending June 30, Texas Instruments said it earned an adjusted $2.14 per share as revenue rose 23% year-over-year to come in at $5.46B. Analog revenue rebounded, up 26% year-over-year to $4.37, while embedded processing revenue rose 16% over the same time frame to $788M. Other revenue slipped 2.2% year-over-year to $310M.

Analysts had expected adjusted earnings of $1.93 per share on $5.24B.

“Our cash flow from operations of $8.7 billion for the trailing 12 months again underscored the strength of our business model, the quality of our product portfolio and the benefit of 300mm production,” Texas Instruments CEO Haviv Ilan said in a statement. “Free cash flow for the same period was $6.5 billion. Over the past 12 months we invested $3.9 billion in R&D and SG&A, invested $3.3 billion in capital expenditures and returned $5.8 billion to owners.”

Looking ahead to the third quarter, Texas Instruments said it expects to earn between $2.23 and $2.57 per share, with the midpoint above the analyst estimate of $2.18 per share. Sales are expected to be between $5.65B and $6.15B, with the midpoint above the forecast of $5.63B.

The company will host a conference call at 4:30 p.m. EST to discuss the results.