Texas Instruments Incorporated (TXN) Q2 2022 Results - Earnings Call Transcript

Texas Instruments Incorporated (NASDAQ:TXN) Q2 2022 Earnings Conference Call July 26, 2022 4:30 PM ET

Company Participants

Dave Pahl - Head, Investor Relations

Rafael Lizardi - Chief Financial Officer

Conference Call Participants

Stacy Rasgon - Bernstein Research

Vivek Arya - Bank of America

Ross Seymore - Deutsche Bank

Joe Moore - Morgan Stanley

Chris Danley - Citi

Toshiya Hari - Goldman Sachs

Harlan Sur - JPMorgan

C.J. Muse - Evercore

Ambrish Srivastava - BMO Securities

Dave Pahl

Welcome to Texas Instruments Second Quarter 2022 Earnings Release Conference Call. Today’s call is being recorded. I’m Dave Pahl, Head of Investor Relations, and I’m 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. A replay will be available through the web.

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’ll provide the following updates. First, I’ll start with a quick overview of the quarter. Next, I’ll provide insight into second quarter revenue results, with some details of what we are seeing with respect to our customers and markets. Lastly, Rafael will cover the financial results and our guidance for third quarter 2022.

Starting with a quick overview of the quarter. Revenue in the quarter was $5.2 billion, an increase of 6% sequentially and 14% year-over-year, driven by growth across markets. Analog revenue grew 15%, Embedded Processing grew 5%, and our Other segment grew 19% from the year-ago quarter.

Now let me comment on the environment in second quarter to provide some context of what we saw with our customers and markets. As we spoke about in our last earnings call, April started out weak from COVID-19 restrictions in China. As those restrictions began to ease towards the latter part of May and into June, customers began to pull product generally consistent with their prior demand forecasts at the start of the quarter.

Moving on, I’ll provide some insight into our second quarter revenue by market from the year-ago quarter. First, the industrial market was up high-single digits and the automotive market was up more than 20%. We saw weakness throughout the quarter in personal electronics, which grew low-single digits. Next, communications equipment was up about 25%. Finally, enterprise systems was up mid-teens.