Texas Instruments Reports 16% Revenue Decline in Q1 2024

2024-04-26

Texas Instruments (TI) had its First Quarter 2024 Earnings Conference Call, where key figures such as Dave Pahl, Head of Investor Relations, and Rafael Lizardi, Chief Financial Officer, engaged with analysts. The company disclosed a first-quarter revenue of $3.7 billion, reflecting a 16% decline compared to the previous year. Performance varied among end markets, with decreases noted in industrial, automotive, personal electronics, communications equipment, and enterprise systems.

During the call, Rafael Lizardi delved into essential financial metrics, discussing gross profit, operating expenses, operating profit, net income, and earnings per share. The company achieved $1 billion in cash flow from operations for the quarter and $6.3 billion over the trailing 12 months. Capital expenditures stood at $1.2 billion, while total outstanding debt was reported at $14.3 billion. Inventory at the quarter's end amounted to $4.1 billion, with projected revenue and earnings per share ranges for the upcoming quarter.

TI strategically adjusted factory loadings based on anticipated demand to effectively manage inventory levels. The company closely monitored pricing trends, market dynamics, and planned operational expenses for the second quarter. Despite sequential declines in the industrial sector, TI historically performs well in the second quarter. The company emphasized the significance of the Chinese market, highlighting its differentiation in capacity and customer support, alongside a consistent pricing strategy.

The company's strategic direction prioritizes free cash flow and investments, considering market cycles and capacity constraints. Positive booking trends in the first quarter influenced the guidance provided. Certain segments within the industrial category displayed indications of growth or stabilization. TI expressed its commitment to long-term ownership goals, adaptability in a dynamic environment, and pride in its employees, customers, communities, and stakeholders. The long-term growth of free cash flow per share was underscored as a pivotal metric for tracking progress and generating value.