Profit jumps for TXN

Article Excerpt

TEXAS INSTRUMENTS INC. $79 (Nasdaq symbol TXN; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 996.0 million; Market cap: $78.7 billion; Price-to-sales ratio: 6.0; Dividend yield: 2.5%; TSINetwork Rating: Average; www.ti.com) is a leading maker of analog chips. That technology converts inputs such as touch, sound and pressure into electronic signals that computers can understand. In the three months ended December 31, 2016, revenue improved 7.1%, to $3.4 billion from $3.2 billion a year earlier. That’s mainly due to stronger chip sales to automakers and other manufacturers. Those gains offset weaker demand from makers of personal electronic devices. Earnings in the quarter jumped 25.2%, to $1.0 billion from $836 million. The company spent $475 million on share buybacks, so per share earnings gained 27.5%, to $1.02 from $0.80. However, if you disregard unusual items, the company earned $0.88 a share in the latest quarter. Meantime, Texas Instruments’ investment in more-efficient chip-making equipment continues to pay off: its gross profit margin (gross profits…