Texas Instruments reports Q2 revenue beat, outlook in line, shares sag

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Tiernan Ray

By

Tiernan Ray

| July 21, 2021 — 20:42 GMT (21:42 BST)

| Topic: Hardware

Chip giant Texas Instruments, which sells into numerous markets for semiconductors, this afternoon reported Q2 revenue and profit that both topped Wall Street’s expectations, while the outlook for revenue was in line with the consensus. 

The report sent Texas Instrument shares down almost 4% in late trading. 

CEO Rich Templeton remarked that the company’s sales growth included 42% growth in sales of analog chips, and 43% growth in sales of embedded chips, such as microcontrollers.

Revenue in the three months ended in June rose 41%, year over year, and 7%, quarter to quarter, to $4.58 billion, yielding a net profit of $2.05 per share. 

Analysts had been modeling $4.36 billion and $1.83 per share.

Despite the upside in the quarter, the amount of positive surprise relative to Wall Street’s expectations has narrowed. 

The top line beat on revenue of 5% is below the average of 8.5% the last six quarters. 

The twelve percent beat on the bottom line is below the average beat of 28% of the last six quarters.

For the current quarter, the company sees revenue of $4.4 billion to $4.76 billion, and EPS in a range of $1.87 to $2.13 per share. That compares to consensus for $4.6 billion and $1.97 per share.

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Tiernan Ray

By

Tiernan Ray

| July 21, 2021 — 20:42 GMT (21:42 BST)

| Topic: Hardware