DALLAS, Oct. 22, 2024 – Texas Instruments Incorporated (TI) has released its financial results for the third quarter of 2024, showcasing a revenue of $4.15 billion, a net income of $1.36 billion, and earnings per share (EPS) of $1.47. This EPS includes a 3-cent benefit from items not originally included in the company’s guidance.
Despite facing challenges, TI’s president and CEO, Haviv Ilan, commented on the company’s performance, noting that revenue has decreased by 8% compared to the same quarter last year but has seen a sequential increase of 9%. While the industrial sector has continued to decline sequentially, growth was observed in all other end markets.
TI reported a robust cash flow from operations totaling $6.2 billion for the trailing 12 months, highlighting the strength of its business model and the quality of its product portfolio. The company also emphasized the advantages of its 300mm production capabilities. Free cash flow for this period was recorded at $1.5 billion.
Over the past year, TI has made significant investments, allocating $3.7 billion in research and development (R&D) and selling, general and administrative (SG&A) expenses, alongside $4.8 billion in capital expenditures. The company returned $5.2 billion to its shareholders during this time.
Looking ahead, TI’s fourth quarter outlook projects revenue between $3.70 billion and $4.00 billion, with earnings per share anticipated to fall between $1.07 and $1.29. The company expects its effective tax rate for the fourth quarter to be approximately 13%.
Earnings Summary
Below is a summary of TI’s earnings for the third quarter of 2024 compared to the same period last year:
- Revenue: $4,151 million (Q3 2024) vs. $4,532 million (Q3 2023) – Change: (8%)
- Operating Profit: $1,554 million (Q3 2024) vs. $1,892 million (Q3 2023) – Change: (18%)
- Net Income: $1,362 million (Q3 2024) vs. $1,709 million (Q3 2023) – Change: (20%)
- Earnings Per Share: $1.47 (Q3 2024) vs. $1.85 (Q3 2023) – Change: (21%)
Cash Generation
In terms of cash generation for the trailing 12 months, TI reported the following:
- Cash Flow from Operations: $1,732 million (Q3 2024) vs. $6,244 million (Q3 2023) – Change: (4%)
- Capital Expenditures: $1,316 million (Q3 2024) vs. $4,776 million (Q3 2023) – Change: (2%)
- Free Cash Flow: $416 million (Q3 2024) vs. $1,468 million (Q3 2023) – Change: (11%)
- Free Cash Flow as % of Revenue: 9.3% (Q3 2024) vs. 9.1% (Q3 2023)
Cash Return to Shareholders
TI has also reported its cash return to shareholders for the trailing 12 months as follows:
- Dividends Paid: $1,187 million (Q3 2024) vs. $4,736 million (Q3 2023) – Change: 5%
- Stock Repurchases: $318 million (Q3 2024) vs. $457 million (Q3 2023) – Change: (58%)
- Total Cash Returned: $1,505 million (Q3 2024) vs. $5,193 million (Q3 2023) – Change: (7%)
Consolidated Statements of Income
Here is a consolidated statement of TI’s income for the three months ended September 30, comparing 2024 to 2023:
| 2024 | 2023 | |
|---|---|---|
| Revenue | $4,151 million | $4,532 million |
| Cost of Revenue (COR) | $1,677 million | $1,717 million |
| Gross Profit | $2,474 million | $2,815 million |
| Research and Development (R&D) | $492 million | $471 million |
| Selling, General and Administrative (SG&A) | $428 million | $452 million |
| Operating Profit | $1,554 million | $1,892 million |
| Other Income (Expense), Net (OI&E) | $131 million | $128 million |
| Interest and Debt Expense | $131 million | $98 million |
| Income Before Income Taxes | $1,554 million | $1,922 million |
| Provision for Income Taxes | $192 million | $213 million |
