Texas Instruments Incorporated (TNX) Q3 2023 Earnings Call Transcript October 24, 2023 4:30 PM ET
Company Participants
Dave Pahl - Vice President, Investor Relations
Rafael Lizardi - Senior Vice President and Chief Financial Officer
Conference Call Participants
Stacy Rasgon - Bernstein Research
Timothy Arcuri - UBS
Ross Seymore - Deutsche Bank
Toshiya Hari - Goldman Sachs
Ambrish Srivastava - BMO Capital Markets
Vivek Arya - Bank of America Securities
Joe Moore - Morgan Stanley
Tore Svanberg - Stifel
Harlan Sur - JPMorgan
William Stein - Truist Securities
Dave Pahl
Welcome to the Texas Instruments Third Quarter 2023 Earnings Conference Call. 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. In addition, today's call is being recorded and will be available 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'll provide the following updates: First, I'll start with a quick overview of the quarter. Next, I'll provide insight into third quarter revenue results, with some details of what we are seeing with respect to our end markets. Lastly, Rafael will cover the financial results, give an update on capital management, as well as share the guidance for our fourth quarter 2023.
Starting with a quick overview of the third quarter: Revenue in the quarter came in about as expected at $4.5 billion, flat sequentially and a decrease of 14% year-over-year. Analog revenue declined 16%, Embedded Processing grew 8%, and our Other segment declined 32% from the year-ago quarter.
Now I'll provide some insight into our third quarter revenue by market. During the quarter, automotive growth continued and industrial weakness broadened. Similar to last quarter, I'll focus on sequential performance, as it is more informative at this time. First, the industrial market was down mid-single digits, with weakness broadening across nearly all sectors. The automotive market continued to grow and was up mid-single digits. Personal electronics was up about 20% off of a low base. And next, communications equipment was down upper teens. And finally, enterprise systems grew upper-single digits.