Texas Instruments Incorporated (TXN) Q3 2022 Earnings Call Transcript

Texas Instruments Incorporated (NASDAQ:TXN) Q3 2022 Earnings Conference Call October 25, 2022 4:30 PM ET

Company Participants

Dave Pahl - Head, Investor Relations

Rafael Lizardi - Chief Financial Officer

Conference Call Participants

Timothy Arcuri - UBS

Vivek Arya - Bank of America Securities

Joshua Buchalter - Cowen

Stacy Rasgon - Bernstein Research

Blayne Curtis - Barclays

Ross Seymore - Deutsche Bank

Joe Moore - Morgan Stanley

William Stein - Truist Security

C.J. Muse - Evercore

Dave Pahl

Welcome to the Texas Instruments Third Quarter 2022 Earnings Release Conference Call. I am Dave Pahl, Head of Investor Relations and I am joined by our Chief Financial Officer, Rafael Lizardi.

For any of you who missed the release, you can find it on our website at ti.com/ir. This call is being broadcast live over the web and can be accessed through our website. In addition, today’s call is being recorded and you will be able to get it via replay on our website. This call will include forward-looking statements that involve risks and uncertainties that could cause TI’s results to differ materially from management’s current expectations. We encourage you to review the notice regarding forward-looking statements contained in the earnings release published today as well as TI’s most recent SEC filings for a more complete description.

Today, we will provide the following updates. First, I will start with a quick overview of the quarter. Next, I will provide insight into third quarter’s revenue results with some details of what we are seeing with respect to our customers and markets. And lastly, Rafael will come to results and our guidance for the fourth quarter of 2022.

Starting with a quick overview of the third quarter, revenue in the quarter came in about as expected at $5.2 billion, an increase of 1% sequentially and 13% year-over-year. Analog revenue grew 13%, Embedded Processing grew 11%, and our Other segment grew 20% from the year ago quarter.

Now I’ll provide some insight into third quarter revenue by market. This quarter, I will focus on our sequential performance as it’s more informative at this time. First, personal electronics declined mid-teens as we continue to see the weakness we described in the second quarter. Industrial was about even sequentially as we saw weakness begin to broaden in the industrial market. The automotive market remains strong and was about 10%. Next, communications equipment was up high single-digits. And finally, enterprise systems, was up mid single-digits.