Texas Instruments Incorporated (NASDAQ: TXN) stock lost over 1.7% on October 25th, 2017 (as of 1:59PM EDT; Source: Google finance) despite a positive start. On the other hand, the group has offered a bullish outlook for the current period, as demand for its microchips remained robust.
TXN in the third quarter of FY 17 has reported the adjusted earnings per share of $1.26, beating the analysts’ estimates for the adjusted earnings per share of $1.12. The company had reported the adjusted revenue growth of 12 percent to $4.12 billion in the third quarter of FY 17, beating the analysts’ estimates for revenue of $3.91 billion. The revenue grew as the demand for the products continued to be strong in the industrial and automotive markets. Analog revenue has posted the growth of 16 percent and Embedded Processing revenue grew 17 percent from the same quarter a year ago.
For the fourth quarter, TXN expects the earnings per share to be in the range of $1.01 to $1.15, which would likely beat the $1.01 per share analysts are looking for, and revenues between $3.57 and $3.87 billion. Wall Street expects $3.67 billion in revenue for the period.
Moreover, the company has posted the gross margin of 64.5 percent, which reflects the quality of the product portfolio, as well as the efficiency of our manufacturing strategy, including the benefit of 300-millimeter Analog production. Texas Instruments for the third quarter has posted the cash flow from operations of $4.8 billion for the trailing 12 months. Free cash flow for the trailing 12 months was $4.2 billion and represents 29.0 percent of revenue.
Texas Instruments has declared a quarterly cash dividend of $0.62 per share of common stock, payable November 13th, 2017, to stockholders of record on October 31st, 2017. The company have returned $4.3 billion to owners in the past 12 months through dividends and stock repurchases. In September, TXN had announced that they would increase the dividend by 24 percent and also increased the share repurchase authorizations by $6 billion.
Texas Instruments stock has risen 37.83% in a year (source: Google Finance).