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NXP Semiconductors N.V. (NXPI - Free Report) reported second-quarter 2021 non-GAAP earnings of $2.38 per share, which outpaced the Zacks Consensus Estimate by 3.03%. Further, the figure increased 240% year over year and 3.03% sequentially.
Revenues of $2.59 billion surpassed the Zacks Consensus Estimate of $2.58 billion. The figure was up 43% from the year-ago period and 1% on a sequential basis.
Top-line growth was driven by strong performance across automotive, mobile, and industrial and IoT end markets in the reported quarter.
However, softness in the communications market and supply-chain disruptions were overhangs.
NXP Semiconductors N.V. Price, Consensus and EPS Surprise
Automotive generated $1.3 billion in revenues (contributing 48.6% to the total revenues), which reflects a year-over-year increase of 87%.
Revenues from Industrial & IoT were $571 million (22% of total revenues), which rose 31% from the prior-year quarter.
Revenues from Mobile were $347 million (13.4% of total revenues), up 36% from the year-ago level.
Communication Infrastructure & Others generated $416 million in revenues (which contributed 16% to the total revenues), down 8% year over year.
Operating Results
Non-GAAP gross margin was 56.1%, which expanded 700 basis points (bps) from the year-ago quarter.
Operating expenses were $849 million, down 15.4% year over year. As a percentage of revenues, the figure significantly contracted to 32.7% from 55.3% in the prior-year quarter.
Non-GAAP operating margin of 32% for the reported quarter expanded from 20.7% in the prior-year period.
Balance Sheet & Cash Flow
As of Jul 4, 2021, cash and cash equivalent balance were $2.9 billion compared with $1.8 billion as of Apr 4, 2021.
Inventories were $1.12 billion at the end of the second quarter, up from $1.06 billion at the end ofthe first quarter. Accounts receivables increased to $991 million from $833 million in the previous quarter.
Long-term debt was $9.6 billion at the end of the quarter under review compared with$7.6billion at the end of the last reported quarter.
The company generated a cash flow of $636 million in the second quarter, down from $732 million in the first quarter.
Its capex investment stood at $150 million. It generated a free cash flow of $486 million in the reported quarter.
In the second quarter, NXP Semiconductors returned $1.4 billion to shareholders primarily through share repurchases and dividend payments.
3Q21 Guidance
For third-quarter 2021, the company expects revenues of $2.775-$2.925 billion, suggesting year-over-year growth of 22-29%. The Zacks Consensus Estimate is pegged at $2.71 billion, which is lower than the mid-point of NXP Semiconductors’range.
The company expects non-GAAP gross margin between 56% and 56.6%. Non-GAAP operating margin is anticipated between 32.4% and 33.6%.
Zacks Rank & Other Stocks to Consider
Currently, NXP Semiconductors has a Zacks Rank #2 (Buy).
Image: Bigstock
NXP Semiconductors (NXPI) Q2 Earnings Beat, Revenues Rise Y/Y
NXP Semiconductors N.V. (NXPI - Free Report) reported second-quarter 2021 non-GAAP earnings of $2.38 per share, which outpaced the Zacks Consensus Estimate by 3.03%. Further, the figure increased 240% year over year and 3.03% sequentially.
Revenues of $2.59 billion surpassed the Zacks Consensus Estimate of $2.58 billion. The figure was up 43% from the year-ago period and 1% on a sequential basis.
Top-line growth was driven by strong performance across automotive, mobile, and industrial and IoT end markets in the reported quarter.
However, softness in the communications market and supply-chain disruptions were overhangs.
NXP Semiconductors N.V. Price, Consensus and EPS Surprise
NXP Semiconductors N.V. price-consensus-eps-surprise-chart | NXP Semiconductors N.V. Quote
End-Market Detail
Automotive generated $1.3 billion in revenues (contributing 48.6% to the total revenues), which reflects a year-over-year increase of 87%.
Revenues from Industrial & IoT were $571 million (22% of total revenues), which rose 31% from the prior-year quarter.
Revenues from Mobile were $347 million (13.4% of total revenues), up 36% from the year-ago level.
Communication Infrastructure & Others generated $416 million in revenues (which contributed 16% to the total revenues), down 8% year over year.
Operating Results
Non-GAAP gross margin was 56.1%, which expanded 700 basis points (bps) from the year-ago quarter.
Operating expenses were $849 million, down 15.4% year over year. As a percentage of revenues, the figure significantly contracted to 32.7% from 55.3% in the prior-year quarter.
Non-GAAP operating margin of 32% for the reported quarter expanded from 20.7% in the prior-year period.
Balance Sheet & Cash Flow
As of Jul 4, 2021, cash and cash equivalent balance were $2.9 billion compared with $1.8 billion as of Apr 4, 2021.
Inventories were $1.12 billion at the end of the second quarter, up from $1.06 billion at the end ofthe first quarter. Accounts receivables increased to $991 million from $833 million in the previous quarter.
Long-term debt was $9.6 billion at the end of the quarter under review compared with$7.6billion at the end of the last reported quarter.
The company generated a cash flow of $636 million in the second quarter, down from $732 million in the first quarter.
Its capex investment stood at $150 million. It generated a free cash flow of $486 million in the reported quarter.
In the second quarter, NXP Semiconductors returned $1.4 billion to shareholders primarily through share repurchases and dividend payments.
3Q21 Guidance
For third-quarter 2021, the company expects revenues of $2.775-$2.925 billion, suggesting year-over-year growth of 22-29%. The Zacks Consensus Estimate is pegged at $2.71 billion, which is lower than the mid-point of NXP Semiconductors’range.
The company expects non-GAAP gross margin between 56% and 56.6%. Non-GAAP operating margin is anticipated between 32.4% and 33.6%.
Zacks Rank & Other Stocks to Consider
Currently, NXP Semiconductors has a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the broader technology sector are Microchip Technology (MCHP - Free Report) , Semtech Corporation (SMTC - Free Report) and Agilent Technologies (A - Free Report) , each currently carrying a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Long-term earnings growth rates for Microchip, Semtech and Agilent are currently projected at 15.33%, 12.5% and 13%, respectively.