Texas Instruments Incorporated (NASDAQ:TXN) impressed in its latest quarterly results as the company smashed analysts’ expectations.
The company announced that its net income for the first quarter tallied up to $1.37 billion, or $1.35 per share, topping the year-ago total of $997 million, or 97 cents per share. Analysts were calling for adjusted earnings of $1.11 per share, according to data compiled by FactSet.
Texas Instruments also surpassed analysts’ guidance on the revenue front as the company’s sales rose to $3.79 billion from $3.4 billion in the year-ago quarter. The Wall Street consensus estimate called for revenue of $3.65 billion.
The company did not increase its dividend of 62 cents per share for the quarter. Texas Instruments also said that its tax rate will be lower than expected in the coming years, which had a positive impact on its stock late in the day.
CEO Rich Templeton said that part of the company’s success during the period was thanks to “strong” demand for its chips in the industrial and auto markets.
For the second quarter, analysts are calling for earnings of $1.23 per share and revenue of $3.9 billion. Texas Instruments is calling for second-quarter earnings of $1.19 per share to $1.39 per share and revenue in the range of $.378 billion to $4.1 billion.
TXN stock was up about 5.5% after the bell Tuesday on the company’s earnings beat.