Quarterly Results and Outlook - Report on Texas Instruments

NEW YORK, September 24, 2015 /PRNewswire/ --

ACI Association has initiated research coverage on Texas Instruments Incorporated (NASDAQ: TXN). Select highlights from the internally released reports are being made available to the general public (included below), with access to the entirety of the research available to new members.

Today, membership is open to readers on a complementary basis at the following URL: http://www.aciassociation.com/TXN.pdf

Highlights from our TXN Report include:

• Second Quarter Results - On July 22, 2015, Texas Instruments Incorporated announced its financial results for the second quarter of 2015. The Company reported net revenue of $3.23 billion in Q2 2015, which is 2% lower than $3.29 billion reported in the Q2 2014. According to the Company, revenue during the quarter was impacted by weak demand in communications equipment, offset by continued strong demand in automotive. Moreover, gross profit in Q2 2015, amounted to $1.9 billion, at par with the previous year quarter. The Company generated operating profit of $1.0 billion, up by 3% YoY. Further, net income in Q2 2015 was recorded at $696 million, against $683 million, reflecting an increase of 2%. Diluted earnings per share for the period came in at $0.65, an increase from $0.62 in same period last year and in line with Zacks Consensus EPS estimate.

• Segment-wise Performance - The Analog segment of the Company generated revenue of $2.05 billion, up 3% YoY. Segment's revenue increased due to strong performance of High Volume Analog & Logic and Power Management division. Operating profit of the Analog segment grew by 10% YoY to $728 million. Whereas, Embedded Processing segment's revenue declined by 2% YoY to $690 million in Q2 2015. Decline was primary due to weak performance of Processor. Meanwhile, operating profit of this segment rose to $135 million from $104 million in prior year quarter. In addition, other segments of the Company generated revenue of $493 million, against $594 million in same period last year. Operating profit of the segment decreased by 31% YoY to $147 million in second quarter of 2015.

• Outlook for Third Quarter of 2015 - The Company expects market to be weaker year over year in the third quarter than it was in the second. Therefore, revenue is anticipated to be between $3.15 billion and $3.41 billion, below the Zacks Consensus Estimate of $3.46 billion for the next quarter. In addition, earnings per share are forecasted to be in range of $0.62 and $0.72, lower than the Zacks Consensus Estimate of $0.75 per share at the mid-point. Further, the Company's annual effective tax rate is expected to be about 30%, unchanged from previous guidance.

To find out how this influences our rating on Texas Instruments Incorporated, read the full report in its entirety here: http://www.aciassociation.com/TXN.pdf

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