Texas Instruments (TXN) Q3 2022 earnings results beat expectations, lower Q4 guidance

Texas Instruments (TXN) released their Q3 2022 earnings report today, beating expectations but lowering Q4 guidance.


Texas Instruments (TXN) reported its Q3 2022 earnings results on Tuesday, October 25, 2022. The company known for making semiconductors and integrated circuits beat expectations but lowered Q4 2022 guidance.

Coming into their Q3 2022 earnings report, Texas Instruments were looking at the following expectations:

  • $2.39/share estimate
  • $2.40/share whisper
  • $5.1 billion revenue
A stock chat for Texas Instruments (TXN) in the after hours of October 25, 2022
Texas Instruments (TXN) was down over 5 percent in after hours trading after the Q3 2022 earnings report was released.
Source: Shacknews

The company beat on all three expectations, reporting earnings per share of $2.47 and revenue of $5.24 billion for Q3 2022. Rich Templeton, TI's chairman, president and CEO, outlined the following key points in the earnings report:

  • "Revenue increased 1% sequentially and increased 13% from the same quarter a year ago, about as expected. During the quarter we experienced expected weakness in personal electronics and expanding weakness across industrial.
  • "Our cash flow from operations of $9.0 billion for the trailing 12 months again underscored the strength of our business model. Free cash flow for the same period was $5.9 billion and 29% of revenue. This reflects the quality of our product portfolio, as well as the efficiency of our manufacturing strategy, including the benefit of 300-mm production.
  • "Over the past 12 months we invested $3.3 billion in R&D and SG&A, invested $3.1 billion in capital expenditures and returned $7.1 billion to owners.
  • "TI's fourth quarter outlook is for revenue in the range of $4.40 billion to $4.80 billion and earnings per share between $1.83 and $2.11. We continue to expect our 2022 effective tax rate to be about 14%."

It’s worth noting that Texas Instruments lowered their guidance for Q4 2022 from $2.21 per share to $1.83 to $2.11 per share. They also lowered revenue expectations from $4.9 billion to a range of $4.4 billion to $4.8 billion. That level of uncertainty is undoubtedly cause for concern and the stock reflected that in after hours in Tuesday. Texas Instruments was down over 5 percent in after hours trading.

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