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Two core businesses lost, Texas Instruments' third-quarter revenue fell 11% year-on-year
On October 23, Texas Instruments (TI) disclosed in the third quarter of 2019 that the company's current revenue fell 11% from the same period last year, lower than expected.
According to Texas Instruments, mainly due to the further weakness of most of the terminal markets, compared with the same period last year, the company's core business, analog business revenue fell by 8%, embedded processing business revenue fell by 19%. The year-on-year growth rates of both businesses have declined. Earnings per share were $1.49, including $0.09 in revenue that was not included in our original expectations for discrete tax benefits.
At the same time, Texas Instruments' gross profit for the period was $2.45 billion, accounting for 65% of revenue. Compared with the same period last year, gross profit declined due to falling income. Gross profit margin decreased by 90 basis points.
In addition, the company's operating profit was $1.59 billion, accounting for 42% of revenue. Operating profit decreased by 18% compared with the same period of last year. The operating profit margin of the analog business was 46%, down from 50% a year ago; the profit margin of the embedded processing business was 32%, down from 35% a year ago.
In addition, its third quarter operating cash flow was $2 billion. Free cash flow for the past 12 months was $6 billion, a 2% increase from the same period last year. Free cash flow margin for the same period was 41% of revenue.
Texas Instruments states: "We will continue to benefit from the quality of our long-lived and diverse product portfolio and the efficiency of our manufacturing strategy, including the output of our growing 300mm analog products. We believe that only free cash flow will be Free cash flow will be valued after investing effectively in the business or returning it to the owner. In the past 12 months, we have returned $7.4 billion in cash to the owner through dividends and share buybacks. This demonstrates our confidence in the business model and our commitment to return all free cash flow to the owner.”
The company also mentioned in the performance meeting that operating income for the fourth quarter of this year is expected to be US$30.7-3.33 billion. It fell 10%-19%, and earnings per share were 0.91-1.09 US dollars.
According to Texas Instruments, mainly due to the further weakness of most of the terminal markets, compared with the same period last year, the company's core business, analog business revenue fell by 8%, embedded processing business revenue fell by 19%. The year-on-year growth rates of both businesses have declined. Earnings per share were $1.49, including $0.09 in revenue that was not included in our original expectations for discrete tax benefits.
At the same time, Texas Instruments' gross profit for the period was $2.45 billion, accounting for 65% of revenue. Compared with the same period last year, gross profit declined due to falling income. Gross profit margin decreased by 90 basis points.
In addition, the company's operating profit was $1.59 billion, accounting for 42% of revenue. Operating profit decreased by 18% compared with the same period of last year. The operating profit margin of the analog business was 46%, down from 50% a year ago; the profit margin of the embedded processing business was 32%, down from 35% a year ago.
In addition, its third quarter operating cash flow was $2 billion. Free cash flow for the past 12 months was $6 billion, a 2% increase from the same period last year. Free cash flow margin for the same period was 41% of revenue.
Texas Instruments states: "We will continue to benefit from the quality of our long-lived and diverse product portfolio and the efficiency of our manufacturing strategy, including the output of our growing 300mm analog products. We believe that only free cash flow will be Free cash flow will be valued after investing effectively in the business or returning it to the owner. In the past 12 months, we have returned $7.4 billion in cash to the owner through dividends and share buybacks. This demonstrates our confidence in the business model and our commitment to return all free cash flow to the owner.”
The company also mentioned in the performance meeting that operating income for the fourth quarter of this year is expected to be US$30.7-3.33 billion. It fell 10%-19%, and earnings per share were 0.91-1.09 US dollars.
