Texas Instruments' financial forecast is better than expected this season, the CEO said that the demand for automotive chips is still strong
Texas Instruments Incorporated (TI) released its second-quarter 2017 financial results after the market closed on June 25, showing strong performance across multiple metrics. Revenue reached $3.693 billion, a 13% increase compared to the previous year. Operating profit climbed by 30.9% to $1.48 billion, while diluted earnings per share rose 30.4% to $1.03. Analysts had previously expected earnings per share of $0.96, according to Thomson Reuters I/B/E/S, making TI's results exceed expectations.
Looking ahead to the third quarter (July–September), TI CEO Rich Templeton provided guidance, forecasting revenue between $3.74 billion and $4.06 billion, with a median of $3.9 billion—a 5.6% increase from the same period last year. Earnings per share are expected to range from $1.04 to $1.18. Analysts had predicted revenue of $3.76 billion and EPS of $1.05, so TI’s outlook is slightly above these estimates.
Templeton highlighted that demand for TI’s chips in both the automotive and industrial sectors remains robust. In the second quarter, analog chip sales grew by 18%, while operating profits jumped 38%. Sales of embedded processing chips also saw significant growth, increasing by 15%, with revenue rising 41% year-over-year.
In 2016, 18% of TI’s revenue came from automotive chips, including sensors used in advanced driver assistance systems. This segment continues to be a key growth driver for the company.
On June 25, shares of Texas Instruments closed at $81.39, up 0.58% during regular trading. Following the earnings report, the stock surged 2.88% to $83.73. As of July 25, the highest price this year was recorded on June 9 at $84.65.
This positive performance underscores the continued strength in the automotive electronics sector, with TI’s CEO emphasizing sustained demand for automotive chips. If you're interested in more updates or detailed insights into the industry, stay tuned—electronic engineering news will keep you informed with the latest developments and comprehensive analysis.
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