Texas Instruments (TXN) reported its financial performance for the first quarter of 2023, surpassing analyst estimates on both revenue and earnings per share. Revenue for the quarter reached $3.66 billion, marginally exceeding the consensus estimate of $3.611 billion. However, it represented a decline of 16% year-over-year and 10% sequentially, driven by revenue declines across all end markets.
Despite the revenue dip, Texas Instruments reported robust earnings of $1.20 per share, beating analyst estimates of $1.08 per share. This included a 10-cent benefit from items that were not part of the company’s original guidance. The company attributed its strong earnings to the strength of its business model, the quality of its product portfolio, and the benefits of 300mm production.
Haviv Ilan, President and CEO of Texas Instruments, commented on the company’s financial performance, highlighting the strength of its cash flow generation. He stated, “Our cash flow from operations of $6.3 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.”
Texas Instruments provided guidance for the second quarter, projecting revenue in the range of $3.65 billion to $3.95 billion. This is slightly below analysts’ estimates of $3.77 billion. The company also anticipated second-quarter earnings in the range of $1.05 to $1.25 per share, compared to estimates of $1.16 per share.
Following the earnings announcement, analysts made adjustments to their price targets for Texas Instruments. Mizuho boosted its price target from $164 to $170, while Truist Securities raised its target from $165 to $167. However, both analysts maintained their Neutral and Hold ratings, respectively.
Overall, Texas Instruments’ financial performance for the first quarter of 2023 was positive, with the company beating analyst estimates on earnings per share and providing a solid outlook for the second quarter.
