Back to top

Image: Bigstock

NXPI Q3 Earnings Beat, Revenues Miss, Shares Down on Weak Q4 View

Read MoreHide Full Article

NXP Semiconductors (NXPI - Free Report) reported third-quarter 2024 non-GAAP earnings of $3.45 per share, beating the Zacks Consensus Estimate by 0.58%. The figure declined 7% year over year.

NXPI’s earnings beat the Zacks Consensus Estimate thrice and matched once, with the average surprise being 1.79%.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

NXPI’s top line of $3.250 billion was in line with the midpoint of management’s guidance, down 5.4% year over year. The figure missed the Zacks Consensus Estimate of $3.251 billion by 0.04%.

NXPI’s better-than-expected figures in the Communication Infrastructure, Mobile and Automotive end markets were negated by increasing macroeconomic challenges in the Industrial & IoT market.

NXPI’s unimpressive top-line and bottom-line guidance for the fourth quarter, along with flat third-quarter performance, accompanied by a broader macro weakness is likely to affect the stock’s movement. NXPI shares were down more than 6% in pre-market trading following the results.

On a year-to-date basis, shares of NXPI have gained 3.2%, outperforming the Zacks Semiconductor - Analog and Mixed industry’s return of 2.6%.

NXPI’s Q3 2024 Details

Revenues from Automotive (56.3% of total revenues) in the third quarter were $1.829 billion, down 3.3% year over year. This figure surpassed the consensus mark of $1.812 billion.

Third-quarter revenues from Mobile (12.5% of total revenues) were $407 million, up 8% year over year. The figure surpassed the consensus mark of $396 million.
 

NXP Semiconductors N.V. Price, Consensus and EPS Surprise

NXP Semiconductors N.V. Price, Consensus and EPS Surprise

NXP Semiconductors N.V. price-consensus-eps-surprise-chart | NXP Semiconductors N.V. Quote

Revenues from Communication Infrastructure & Others (13.9% of total revenues) in the third quarter were $451 million, down 19.3% from the year-ago reported figure. This figure surpassed the consensus mark of $417 million.

Revenues from Industrial & IoT (17.3% of total revenues) were $563 million, which declined 7.2% from the year-ago level and lagged the consensus mark of $627 million.

NXPI’s non-GAAP gross profit in the third quarter was $1.892 billion, down 6% year over year. The non-GAAP gross margin contracted 30 basis points (bps) on a year-over-year basis to 58.2%.

For the third quarter, non-GAAP operating income declined 4% year over year to $1.15 billion. However, operating margin expanded 50 bps to 35.5% from the year-ago quarter.

 

NXPI’s Balance Sheet & Cash Flow

As of Sept. 30, 2024, NXPI’s cash and cash equivalent, and short-term deposit balance was $3.12 billion, down from $3.26 billion as of June 30, 2024.

The long-term debt was $9.683 billion at the end of the quarter under review compared with $9.681 billion at the end of the last reported quarter.

Cash flow from operations was $779 million, up 2.4% from the previous quarter’s levels. The company’s capex investment was $186 million in the reported quarter. NXPI generated a free cash flow of $593 million in the third quarter.

In the third quarter, NXPI made dividend payments of $259 million and repurchased shares worth $305 million.

NXPI’s Q4 Guidance

For fourth-quarter 2024, NXPI expects revenues in the range of $3-$3.2 billion, indicating a decline of 6.9-14% year over year. 

The Zacks Consensus Estimate is pegged at $3.39 billion, indicating a year-over-year decline of 1.01%.

NXPI expects adjusted earnings in the band of $2.93-$3.33 per share, suggesting a decline of 11.4-26.6% year over year. 

The consensus mark for earnings is pinned at $3.66 per share, indicating a year-over-year decline of 1.35%.

Zacks Rank & Stocks to Consider

Currently, NXPI carries a Zacks Rank #4 (Sell) at present. 

Shopify (SHOP - Free Report) , Arista Networks (ANET - Free Report) and Bilibili (BILI - Free Report) are some better-ranked stocks that investors can consider in the broader Zacks Computer & Technology sector. 

Shopify sports a Zacks Rank #1 (Strong Buy), while Arista Networks and Bilibili carry a Zacks Rank #2 (Buy) each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

SHOP’s shares have gained 0.7% year to date. It is set to report third-quarter 2024 results on Nov. 12.

ANET shares have gained 67.7% year to date. ANET is set to report its third-quarter 2024 results on Nov. 7.

BILI shares have surged 80.8% year to date. It is slated to release third-quarter 2024 results on Nov. 14.

Published in