Texas Instruments stock climbs on upbeat outlook, despite Q4 EPS miss

Texas Instruments (NASDAQ:TXN) stock moved higher overnight after fourth-quarter revenue was reported at $4.42 billion, and net income came in at $1.16 billion for the three month period.

The semiconductor firm, in its stock market filing, showed earnings per share of $1.27 and cash flow from operations for the trailing 12 months of $7.2 billion, with free cash flow for the same period of $2.9 billion.

EPS was shy of Wall Street expectations, given that consensus forecasts had been pitched at $1.30 not the $1.27 that was reported. But, the tech stock's forward-looking outlook was more upbeat.

It expects first-quarter revenue in a range of $4.32 billion to $4.68 billion and diluted earnings per share in a range of $1.22 to $1.48.

CEO Haviv Ilan, meanwhile, commented that the quarter's cash flow number "underscored the strength of the business model [and] the quality of the product portfolio".

Revenue decreased 7% sequentially and increased 10% from the same quarter a year ago, Ilan also noted.

Texas Instruments added that over the past 12 months, it had invested $3.9 billion in R&D and SG&A, invested $4.6 billion in capital expenditures and returned $6.5 billion to shareholders.

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For the year, the revenue tally came in at $17.682 billion, and net income was just a shade over $5 billion, the filing showed. The company reported capital expenditures of $4.55 billion for the year and total cash returned on a trailing 12-month basis of $6.476 billion.

In New York, in after-hours trade, Texas Instruments stock was up $14.23 or 7.24% at $196.63.

The Recap

• Texas Instruments reported Q4 revenue of $4.42 billion.
• Trailing 12-month cash flow from operations was $7.2 billion.
• First-quarter revenue outlook $4.32 billion to $4.68 billion.