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Texas Instruments (TXN) Posts Solid Earnings, Shares Tick Up 1%

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Texas Instruments (TXN - Free Report) just released its latest quarterly results, posting earnings of $1.40 per share and revenues of $4.02 billion.

Currently, TXN is a Zacks Rank #2 (Buy), but that could change based on today’s results.

Investors should note that TXN’s consensus earnings projection has trended upward over the course of the quarter. The firm has seen positive revisions across the board for the current quarter, next quarter, current year, and next year. Furthermore, all of these revisions have come in just the last week.

Investors should also note that our consensus estimate for TXN’s earnings has seen positive movement in the last month, ticking up three cents to $1.33 per share for the quarter.

Shares of the company have gained 3.1% over the past month but were down 0.8% during regular trading hours today.

However, the stock is currently up 1% to $114.80 per share in after-hours trading shortly after its earnings report was released.

TXN:

Beat earnings estimates. The company reported earnings of $1.40 per share, topping the Zacks Consensus Estimate of $1.33 per share and up 4.5% year-over-year.

Beat revenue estimates. The company saw revenue figures of $4.02 billion, surpassing our consensus estimate of $3.95 billion and up 9% year-over-year.

"Our cash flow from operations of $6.6 billion for the trailing 12 months again underscored the strength of our business model. Free cash flow for the trailing 12 months was $5.7 billion, or 36.6 percent 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 Rich Templeton, TI's chairman, president and CEO.

The company set the following financial guidance for Q3 FY18:

"TI's third-quarter outlook is for revenue in the range of $4.11 billion to $4.45 billion, and earnings per share between $1.41 and $1.63, which includes an estimated $10 million discrete tax benefit. We continue to expect our ongoing annual operating tax rate to be about 20 percent in 2018 and 16 percent starting in 2019."

Here’s a graph that looks at TXN’s recent earnings performance:

Based in Dallas, Texas Instruments is an equipment manufacturer of analog, mixed signal and digital signal processing (DSP) integrated circuits.

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