Texas Instruments Incorporated (TXN) Q4 2023 Earnings Call Transcript Summary

By / / Texas Instruments

The following is a summary of the Texas Instruments Incorporated (TXN) Q4 2023 Earnings Call Transcript:

Financial Performance:

  • Texas Instruments reported a Q4 revenue of $4.1 billion, marking a decrease of 10% sequentially and 13% from the same quarter a year ago.
  • Gross profit was $2.4 billion, or 60% of revenue; the profit margin was down 650 basis points due to lower revenue and higher manufacturing costs.
  • Operating profit amounted to $1.5 billion, or 38% of revenue, marking a 30% decline from the year-ago quarter.
  • The company reported Q4 net income of $1.4 billion and earnings per share of $1.49.
  • Expected revenue for Q1 2024 is between $3.45 billion and $3.75 billion and earnings per share between $0.96 and $1.16.

Business Progress:

  • Despite a decline in industrial and automotive revenues in Q4, these sectors combined made up 74% of TI’s revenue in 2023.
  • The company has focused on opportunities in all markets, with a strategic emphasis on industrial and automotive sectors due to the growing demand for analog and embedded technologies.
  • The company increased its dividend per share by 5% in Q4, marking the 20th consecutive year of dividend increases.
  • Texas Instruments continues to aggressively invest in its manufacturing capacity and technology, with capital expenditures of $1.1 billion in the quarter and the expected $5 billion per year through 2026.
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