Texas Instruments once warned that the downtrend of chipmakers may last some more quarter due to the U.S. – China trade feud. But according to Rafael Lizardi, Chief Financial Officer of TI, the feud does not affect TI’s business in China.
TI reported a $3.67 billion revenue, $1.31 billion net income and $1.36 earning per share in the second quarter showing a 6.6% rise in their earnings. This 2nd quarter result beats the Zacks Consensus Estimate by 1.75%.
With TI’s core values of integrity, innovation and commitment, the company once again proved that they are one of the top semiconductor companies worldwide. The company has then again surpassed consensus EPS estimates over the last four quarters.
Rich Templeton, TI’s chairman, president and CEO commented on the company’s performance saying, ” Our cash flow from operations of $7.2 billion for the trailing 12 months again underscored the strength of our business model. Free cash flow for the trailing 12 months was $5.9 billion and 39% 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.”
According to him, TI’s third-quarter outlook ranges from $3.65 billion to $3.95 billion and an earnings per share between $1.31 and $1.53. “We continue to expect our annual operating tax rate to be about 16% in 2019,” Templeton added.