Texas Instruments beat earnings expectations on broad-based chip demand

Texas Instruments $TXN reported third-quarter earnings of $2.62 a share on Wednesday, up from $1.48 in the same quarter a year ago, as revenue rose 28% to $6.06 billion. Revenue increased 11% from the prior quarter, the company said.

The Dallas-based chipmaker said earnings per share included a 1-cent reduction that was not in its original guidance. Net income was $2.43 billion, up 78% from $1.36 billion a year ago. Operating profit rose 73% to $2.87 billion.

The earnings figure topped the $2.44 a share analysts expected, according to The Wall Street Journal. Revenue beat the $5.94 billion analysts forecast, according to The Wall Street Journal. Analysts surveyed by Zacks Investment Research had expected $2.40 a share, according to The Associated Press.

Analog revenue rose 32% to $4.91 billion, and embedded processing revenue rose 21% to $858 million, the company said. Revenue in its other category fell 6% to $286 million.

"Revenue increased 11% sequentially and 28% from the same quarter a year ago with continued broad growth in industrial, automotive and data center," Haviv Ilan, TI's chairman, president and CEO, said in a statement.

Cash flow from operations totaled $9.9 billion over the trailing 12 months, and free cash flow was $8.4 billion, according to the company. Free cash flow was $2.4 billion in the prior-year period. TI invested $2.6 billion in capital expenditures over the past 12 months and returned $5.8 billion to shareholders. Capital expenditures in the third quarter were $463 million, down from $1.20 billion a year ago.

For the fourth quarter, TI said it expects revenue of $5.80 billion to $6.30 billion, with per-share profit of $2.45 to $2.79. Analysts are forecasting $5.76 billion in revenue and per-share profit of $2.31 for the fourth quarter, according to The Wall Street Journal.