Texas Instruments late Wednesday beat expectations for the chipmaker's first quarter and guided above views for Q2. TXN stock rose in extended trading.
The Dallas-based company earned $1.28 a share on sales of $4.07 billion in the March quarter. Analysts polled by FactSet had expected TI to earn of $1.07 a share on sales of $3.91 billion. On a year-over-year basis, its earnings rose 7% while sales increased 11%.
TI's Q1 report marked a return to growth for the company after nine straight quarters of declining sales and earnings.
For the current quarter, Texas Instruments predicted earnings of $1.34 a share on sales of $4.35 billion. That's based on the midpoint of its guidance. Wall Street was modeling earnings of $1.21 a share on sales of $4.1 billion. In the year-ago period, TI earned $1.22 a share on sales of $3.82 billion.
In after-hours trading on the stock market today, TXN stock climbed more than 4% to 159.50. During the regular session, TXN stock advanced 3.7% to close at 152.15. Year to date, Texas Instruments is down 18.9%.
"All of our markets grew sequentially with the exception of a seasonal decline in personal electronics," Chief Executive Haviv Ilan said in a news release. Total revenue rose 2% sequentially from the fourth quarter.
"Our cash flow from operations of $6.2 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," he said. "Free cash flow for the same period was $1.7 billion."
Follow Patrick Seitz on X, formerly Twitter, at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
