Earnings Highlights - Texas Instruments

LONDON, February 10, 2015 /PRNewswire/ --

Editor Note: For more information about this release, please scroll to bottom.

Investor-Edge.com has issued free earnings review on Texas Instruments Inc. (NASDAQ: TXN). On January 26, 2015, the company reported its financial results for Q4 FY14 and full year FY14 (period ended December 31, 2014). Click on http://get.Investor-Edge.com/pdf/?c=Texas%20Instruments&d=10-Feb-2015&s=TXN to read our free earnings review on Texas Instruments Inc. (TI). During Q4 FY14, the company's net income and earnings per share (EPS) surged 61% Y-o-Y and 65% Y-o-Y, respectively. Chairman, President and CEO of TI, Richard (Rich) K. Templeton, stated that the company's revenue growth of 8% Y-o-Y was consistent with their expectations, as were EPS, excluding two items. He added that strength in both of these came from another quarter of strong execution. Our free coverage report can be accessed at:

http://get.Investor-Edge.com/pdf/?c=Texas%20Instruments&d=10-Feb-2015&s=TXN

Earnings Overview 

During Q4 FY14, TI's revenue was $3.27 billion, compared to $3.03 billion in Q4 FY13. The company's Q4 FY14 revenues were at par with Bloomberg analysts' forecast of $3.27 billion. Further, TI's Q4 FY14 gross profit came in at $1.90 billion, compared to $1.64 billion in Q4 FY13. During the reported quarter, the company generated $1.27 billion of cash flow from operations and $1.15 billion as free cash flow. Free research on TXN can be downloaded in PDF format at:

http://get.Investor-Edge.com/pdf/?c=Texas%20Instruments&d=10-Feb-2015&s=TXN

Mr. Templeton informed that the company's Analog and Embedded Processing drove revenue growth in Q4 FY14, and combined, they comprised 85% of Q4 FY14 revenue. He also said that TI's gross margin of 58.0% reflects the diversity and longevity of the company's product portfolio, as well as the efficiency of their manufacturing strategy. He further asserted that the company's cash flow from operations once again underscored the strength of the business model.

In Q4 FY14, TI's net income stood at $825 million, or $0.76 per diluted share, compared to $511 million, or $0.46 per diluted share, in Q4 FY13. Analysts from Bloomberg had expected net income of $744 million, or $0.69 per diluted share, in Q4 FY14. Sign up and read the free analyst's notes on TXN at:

http://get.Investor-Edge.com/pdf/?c=Texas%20Instruments&d=10-Feb-2015&s=TXN

TI's revenues for FY14 came in at $13.05 billion, compared to $12.21 billion in FY13. The company's revenue during FY14 was at par with Bloomberg analysts' forecast of $13.05 billion. Moreover, TI's gross profit increased to $7.43 billion in FY14 from $6.36 billion in FY13.

In FY14, TI's net income improved to $2.82 billion, or $2.57 per diluted share, from $2.16 billion, or $1.91 per diluted share, in FY13. Analysts from Bloomberg had expected net income of $2.74 billion, or $2.51 per diluted share, in FY14.  

Mr. Templeton said that TI has returned $4.2 billion to shareholders in FY14 through stock repurchases and dividends and it has $3.5 billion of cash and short-term investments as of December 31, 2014. Visit Investor-Edge and access the latest research on TXN at:

http://get.Investor-Edge.com/pdf/?c=Texas%20Instruments&d=10-Feb-2015&s=TXN

Commenting on TI's outlook for Q1 FY15, Mr. Templeton expects revenue in the range of $3.07 billion to $3.33 billion and earnings per share between $0.57 and $0.67. At the midpoint of the range, revenue is expected to increase 7% from Q1 FY14, he added. He also said that the annual effective tax rate for 2015 is expected to be about 30%, which does not assume the reinstatement of the R&D tax credit.

Stock Performance 

On the day following the earnings release, January 27, 2015, TI's stock edged 0.40% lower to end the session at $54.83. Since then, the stock has moved both ways with losses outperforming gains. On the last close, Monday, February 09, 2015, the company's shares finished 0.17% lower at $54.27, after vacillating between $54.03 and $54.76. A total of 5.15 million shares were traded, which was below its three months average volume of 5.56 million shares. Over the last one month and over the previous three months, the company's shares have advanced 1.25% and 6.62%, respectively. Further, the stock has surged 29.37% in the past one year. Shares in TI are trading above their 50-day and 200-day moving averages of $54.03 and $49.25, respectively.

Sneak Peek to Corporate Insider Trading 

In the last one month, there were 33 corporate insider transactions made by 15 individuals. Between January 16 and February 05, 2015, a total of 930,812 shares have been purchased at an average price of $31.75 per share and for a total value of $29.55 million. During the same period, a total of 1.27 million shares, worth $68.32 million, were sold at an average price of $53.96 per share. The following are a few key insider trading transactions during the aforementioned period: Richard K. Templeton bought 620,000 shares at an average price of $30.71 per share and sold 680,848 shares at an average price of $53.61 per share. Stephen Anderson, Senior Vice President and General Manager of Analog business at TI, purchased 125,000 shares at a price of $34.63 per share and disposed 166,667 shares at an average price of $54.79 per share. Moreover, on January 30, 2015, Brian Crutcher, Executive Vice President Business Operations at TI, bought 140,625 shares at an average price of $33.02 per share and sold 160,666 shares at an average price of $54.08 per share. Complimentary in-depth research on TXN is available at:

http://get.Investor-Edge.com/pdf/?c=Texas%20Instruments&d=10-Feb-2015&s=TXN

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