Texas Instruments reports EPS in-line, revs in-line; guides Q1 in-line
- Reports Q4 (Dec) earnings of $1.09 per share, excluding $0.75/share tax charge, in-line with the GAAP Capital IQ Consensus of $1.09; revenues rose 9.8% year/year to $3.75 bln vs the $3.74 bln Capital IQ Consensus.
- Co issues in-line guidance for Q1, sees EPS of $0.98-1.14, excluding a ~$0.03/share or $30 mln tax benefit, vs. $1.04 Capital IQ Consensus; sees Q1 revs $3.49-3.79 bln vs. $3.63 bln Capital IQ Consensus Estimate.
- "Demand for our products continued to be strong in the industrial and automotive markets. "In our core businesses, Analog revenue grew 11 percent and Embedded Processing grew 20 percent from the same quarter a year ago. Operating margin increased in both businesses. "Gross margin of 65.1 percent for the quarter reflected the quality of our product portfolio, as well as the efficiency of our manufacturing strategy, including the benefit of 300-millimeter Analog production.
- "Notably, the recently passed tax reform act will reduce our annual operating tax rate from 31 percent in 2017 to an ongoing rate of 18 percent starting in 2019, comprehending the benefit of exports and having manufacturing, R&D and intellectual property in the United States. In 2018, our annual operating tax rate will be 23 percent, 5 percentage points higher, due to transitional expense associated with the reduced U.S. tax rate in 2018."