Shares of Texas Instruments Incorporated (NASDAQ: TXN) traded up about 6 percent in Monday’s after-hours session, following the
announcement of the company’s Q2 results. The semiconductor manufacturer reported earnings of $0.76 per share, above the Street’s
consensus of $0.73 per share. Revenue of $3.273 billion came in slightly ahead of estimates of $3.2 billion.
For the ongoing quarter, management guided for sales of $3.34-$3.62 billion, mostly above the Street’s expectation of $3.38
billion. Management said it envisions EPS of $0.81 to $0.91, again mostly ahead of the Street’s consensus of $0.81.
Rich Templeton, Chairman, President and CEO, said demand for the company’s products “continued to be strong in the automotive
market, and grew in the industrial and communications equipment markets. Despite sequential growth, demand in the personal
electronics market was down from a year ago.”
In Texas Instruments’ core businesses, “Embedded Processing revenue grew 9 percent and Analog revenue was about even with the
same quarter a year ago. Operating margin increased in both businesses,” Templeton added. Finally, "Gross margin of 61.2 percent
reflected the quality of our product portfolio, as well as the efficiency of our manufacturing strategy, including the benefit of
300-millimeter Analog production.”
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