#USA #Dallas #financial results #Q4 2024 #Texas Instruments

Texas Instruments Reports Q4 2024 Financial Results

Texas Instruments Incorporated (TI), a leading semiconductor company, unveiled its financial results for the fourth quarter of 2024. The report, released on January 23, 2025, highlighted several key figures that reflect the company's performance over the past quarter and year.

Financial Summary

In Q4 2024, TI reported a revenue of $4.01 billion, down 2% year-over-year from $4.07 billion in Q4 2023. The net income for the quarter was $1.21 billion, translating to earnings per share (EPS) of $1.30; this includes a minor benefit that was not considered in prior guidance. Although these numbers indicate a decline compared to the same period last year, they also showcase the steady cash flow that the company maintains. The operating profit for the quarter reached $1.38 billion, a 10% decrease compared to $1.53 billion from the previous year.

Furthermore, the cash flow from operations totaled $6.3 billion over the last 12 months, demonstrating the robustness of TI's business model. The company reported free cash flow of $1.5 billion, showcasing its ability to generate cash after capital expenditures. For the upcoming first quarter, TI has projected revenues between $3.74 billion and $4.06 billion, with anticipated earnings per share expected to fall between $0.94 and $1.16.

Shareholder Returns

A significant aspect of TI's report focuses on the returns to shareholders. Over the past year, TI returned $5.7 billion to its owners through dividends and stock buybacks. This included monetary dividends amounting to $4.79 billion, alongside stock repurchases totaling $929 million. The company's dividends per share have also seen a steady increase, reflecting its commitment to returning value to shareholders.

Looking at the investments TI made in research and development (R&D) and selling, general and administrative (SG&A) expenses, the total investments in these areas reported was $3.8 billion. Additionally, capital expenditures reached $4.8 billion during the last fiscal year.

TI’s president and CEO, Haviv Ilan, acknowledged the challenges the company faced over the past year, noting that revenue experienced a sequential decrease of 3%. He remained optimistic about the company's resilience, emphasizing its strong product portfolio and its effective 300mm production capabilities.

Future Outlook

TI's outlook for 2025 indicates a more stabilizing revenue projection despite ongoing market challenges, with an expected effective tax rate of approximately 12%. The company continues to focus on navigating the semiconductor industry's evolving landscape, particularly in the industrial and automotive markets where demand fluctuations have been significant.

Conclusion

In conclusion, TI's Q4 2024 financial results reveal a company that is navigating through some headwinds while still maintaining a strong operational backbone. With substantial cash flow generation and ongoing investments in R&D, TI is well-positioned for the challenges ahead. As the company continues to adapt and strategize for the future, the performance of TI will be closely watched by investors and industry analysts alike.

For those interested in a deeper insight into TI’s financial results and strategic direction, a conference call is scheduled for later today on the company’s website.