Texas Instruments (NASDAQ:TXN) Announces Quarterly Earnings Results

Key Points

• Texas Instruments beat earnings expectations, reporting quarterly EPS of $2.62 versus the $2.43 consensus estimate. The company posted a 31.11% net margin and 35.77% return on equity.
• Shares rose 2.3% to $284.22 following the results. Analysts maintain a mixed outlook, with a consensus rating of “Hold” and an average price target of $302.88.
• The company increased its quarterly dividend from $1.42 to $1.52 per share, equivalent to $6.08 annually and a 2.1% yield.

Texas Instruments (NASDAQ:TXN - Get Free Report) posted its quarterly earnings results on Wednesday. The semiconductor company reported $2.62 earnings per share for the quarter, beating the consensus estimate of $2.43 by $0.19, Zacks reports. Texas Instruments had a net margin of 31.11% and a return on equity of 35.77%.

Texas Instruments Stock Up 2.3%

Shares of NASDAQ:TXN traded up $6.44 during midday trading on Wednesday, hitting $284.22. 6,524,504 shares of the company's stock were exchanged, compared to its average volume of 7,554,749. The company has a debt-to-equity ratio of 0.72, a current ratio of 4.86 and a quick ratio of 3.44. The stock has a 50 day moving average price of $271.60 and a 200-day moving average price of $278.20. The company has a market cap of $259.57 billion, a PE ratio of 43.26, a price-to-earnings-growth ratio of 1.54 and a beta of 1.35. Texas Instruments has a 12 month low of $152.73 and a 12 month high of $334.03.

Texas Instruments Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, November 10th. Stockholders of record on Friday, October 30th will be given a dividend of $1.52 per share. The ex-dividend date of this dividend is Friday, October 30th. This is a boost from Texas Instruments's previous quarterly dividend of $1.42. This represents a $6.08 annualized dividend and a dividend yield of 2.1%. Texas Instruments's payout ratio is presently 92.54%.

Wall Street Analyst Weigh In

TXN has been the topic of a number of research analyst reports. KeyCorp increased their price objective on shares of Texas Instruments from $390.00 to $400.00 and gave the stock an "overweight" rating in a research report on Thursday, July 23rd. Wells Fargo & Company decreased their target price on Texas Instruments from $310.00 to $300.00 and set an "equal weight" rating for the company in a research report on Tuesday. Weiss Ratings raised Texas Instruments from a "buy (b-)" rating to a "buy (b)" rating in a research report on Friday, October 9th. TD Cowen dropped their price target on Texas Instruments from $340.00 to $330.00 and set a "buy" rating on the stock in a research note on Monday. Finally, Citigroup reiterated a "buy" rating and issued a $345.00 price target (up from $280.00) on shares of Texas Instruments in a report on Tuesday, July 14th. Sixteen analysts have rated the stock with a Buy rating, ten have issued a Hold rating and four have given a Sell rating to the company. According to MarketBeat.com, the company currently has an average rating of "Hold" and an average price target of $302.88.

Insider Buying and Selling at Texas Instruments

In related news, VP Tsedeniya Abraham sold 7,000 shares of the firm's stock in a transaction dated Thursday, August 27th. The shares were sold at an average price of $264.63, for a total value of $1,852,410.00. Following the transaction, the vice president owned 23,181 shares of the company's stock, valued at approximately $6,134,388.03. This trade represents a 23.19% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. 0.60% of the stock is owned by corporate insiders.

More Texas Instruments News

Here are the key news stories impacting Texas Instruments this week:

• Positive Sentiment: Investors are positioning ahead of the earnings release, with expectations for approximately $2.42 in third-quarter EPS and $5.92 billion in revenue. Texas Instruments previously guided to revenue of $5.65 billion to $6.15 billion and EPS of $2.23 to $2.57. A strong result or upbeat fourth-quarter outlook could provide another catalyst. Texas Instruments rises as investors position ahead of Q3 results
• Positive Sentiment: Recovering chip demand and moderating factory spending are improving the company’s profit outlook. Analysts and investors are watching whether recently added capacity can support longer-term growth rather than merely amplify a cyclical rebound. Texas Instruments sees profits recover, but is the stock still expensive?
• Positive Sentiment: Texas Instruments raised its quarterly dividend by 7% to $1.52 per share, supporting its shareholder-return narrative and potentially helping sentiment among income-focused investors. Is Texas Instruments' cash recovery real?

Texas Instruments Company Profile

Texas Instruments Incorporated NASDAQ: TXN designs and manufactures analog and embedded semiconductor products used in industrial, automotive, personal electronics, communications equipment, and enterprise systems. Its analog products help manage power, sense and measure real-world signals, and support signal processing, while its embedded processing products provide computing and control functions within electronic systems.

The company offers a broad portfolio of semiconductors, including power-management devices, amplifiers, data converters, microcontrollers, processors, and connectivity products.

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