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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.

Bill Lavoy

October 25, 2022 1:30 PM

Texas Instruments

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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

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.

For more earnings reports news for both technology and gaming visit our Market News page.

Bill Lavoy

Managing Editor

Bill, who is also known as Rumpo, is a lifelong gamer and Toronto Maple Leafs fan. He made his mark early in his career through guide writing and a deep understanding of editorial SEO. He enjoys putting in the work to create a great content, be it a wild feature or grinding out an in-depth collectible guide. Tweet him @RumpoPlays if you have a question or comment about one of his articles.