NXP Semiconductors N.V. (NXPI - Free Report) delivered first-quarter 2024 non-GAAP earnings of $3.24 per share, which outpaced the Zacks Consensus Estimate by 1.9%. The figure increased 1.6% year over year.
Revenues of $3.13 billion missed the Zacks Consensus Estimate by 0.02%. The figure rose 0.2% from the year-ago level.
Strong momentum across the Industrial & IoT, and Mobile end markets contributed well.
NXPI has gained 10.9% in the year-to-date period, outperforming the industry’s growth of 3%.
However, the company witnessed sluggishness in the Automotive, and Communication Infrastructure & Others markets.
End-Market Detail
Automotive generated $1.804 billion in revenues (58% of the total revenues), reflecting a year-over-year decrease of 1%. The figure surpassed the Zacks Consensus Estimate of $1.803 billion.
Revenues from Industrial & IoT were $574 million (18% of the total revenues), up 14% from the prior-year quarter. The reported figure lagged the consensus mark of $582 million.
Revenues from Mobile were $349 million (11% of the total revenues), up 34% from the year-ago period. The figure beat the Zacks Consensus Estimate of $344 million.
Communication Infrastructure & Others generated $399 million in revenues (13% of the total revenues), down 25% year over year. The reported figure was in line with the consensus mark.
Operating Results
The non-GAAP gross margin was 58.2%, which was flat year over year.
Research and development (R&D) expenses were $564 million, down 2.2% year over year. Selling, general and administrative (SG&A) expenses increased 9.3% year over year to $306 million. As a percentage of revenues, R&D expenses contracted 50 basis points (bps) year over year to 18%, while SG&A expenses expanded 80 bps year over year to 9.8%.
The non-GAAP operating margin of 34.5% for the reported quarter contracted 30 bps from the prior-year period.
Balance Sheet & Cash Flow
As of Mar 31, 2024, the cash and cash equivalent, and short-term deposits balance was $3.3 billion, down from $4.27 billion as of Dec 31, 2023.
The long-term debt was $10.178 billion at the end of the quarter under review compared with $10.175 billion at the end of the last reported quarter.
NXPI generated a cash flow of $851 million in the first quarter of 2024, down from $1.14 billion in the previous quarter.
The company’s capex investment was $224 million in the reported quarter. NXPI generated a free cash flow of $627 million in the quarter.
During the first quarter, the company made dividend payments of $261 million and repurchased shares worth $303 million.
Guidance
For second-quarter 2024, NXP Semiconductors expects revenues of $3.025-$3.225 billion, indicating a year-over-year fall of 5% at the mid-point. The Zacks Consensus Estimate for revenues is pegged at $3.12 billion.
It expects the non-GAAP gross margin between 58% and 59%. The non-GAAP operating margin is anticipated between 33.1% and 35%.
The company anticipates non-GAAP earnings of $3.00-$3.41 per share. The consensus estimate for the same is pegged at $3.15.
Zacks Rank & Stocks to Consider
NXP Semiconductors currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the broader technology sector are Arista Networks (ANET - Free Report) , Dell Technologies (DELL - Free Report) and Badger Meter (BMI - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of Arista Networks have gained 4.2% in the year-to-date period. The long-term earnings growth rate for ANET is 17.48%.
Shares of Dell Technologies have gained 52.3% in the year-to-date period. The long-term earnings growth rate for DELL is projected at 12%.
Shares of Badger Meter have gained 17.5% in the year-to-date period. The long-term earnings growth rate for BMI is 15.57%.
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This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
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NXP Semiconductors N.V. (NXPI - Free Report) delivered first-quarter 2024 non-GAAP earnings of $3.24 per share, which outpaced the Zacks Consensus Estimate by 1.9%. The figure increased 1.6% year over year.
Revenues of $3.13 billion missed the Zacks Consensus Estimate by 0.02%. The figure rose 0.2% from the year-ago level.
Strong momentum across the Industrial & IoT, and Mobile end markets contributed well.
NXPI has gained 10.9% in the year-to-date period, outperforming the industry’s growth of 3%.
However, the company witnessed sluggishness in the Automotive, and Communication Infrastructure & Others markets.
End-Market Detail
Automotive generated $1.804 billion in revenues (58% of the total revenues), reflecting a year-over-year decrease of 1%. The figure surpassed the Zacks Consensus Estimate of $1.803 billion.
Revenues from Industrial & IoT were $574 million (18% of the total revenues), up 14% from the prior-year quarter. The reported figure lagged the consensus mark of $582 million.
Revenues from Mobile were $349 million (11% of the total revenues), up 34% from the year-ago period. The figure beat the Zacks Consensus Estimate of $344 million.
Communication Infrastructure & Others generated $399 million in revenues (13% of the total revenues), down 25% year over year. The reported figure was in line with the consensus mark.
Operating Results
The non-GAAP gross margin was 58.2%, which was flat year over year.
Research and development (R&D) expenses were $564 million, down 2.2% year over year. Selling, general and administrative (SG&A) expenses increased 9.3% year over year to $306 million. As a percentage of revenues, R&D expenses contracted 50 basis points (bps) year over year to 18%, while SG&A expenses expanded 80 bps year over year to 9.8%.
The non-GAAP operating margin of 34.5% for the reported quarter contracted 30 bps from the prior-year period.
Balance Sheet & Cash Flow
As of Mar 31, 2024, the cash and cash equivalent, and short-term deposits balance was $3.3 billion, down from $4.27 billion as of Dec 31, 2023.
The long-term debt was $10.178 billion at the end of the quarter under review compared with $10.175 billion at the end of the last reported quarter.
NXPI generated a cash flow of $851 million in the first quarter of 2024, down from $1.14 billion in the previous quarter.
The company’s capex investment was $224 million in the reported quarter. NXPI generated a free cash flow of $627 million in the quarter.
During the first quarter, the company made dividend payments of $261 million and repurchased shares worth $303 million.
Guidance
For second-quarter 2024, NXP Semiconductors expects revenues of $3.025-$3.225 billion, indicating a year-over-year fall of 5% at the mid-point. The Zacks Consensus Estimate for revenues is pegged at $3.12 billion.
It expects the non-GAAP gross margin between 58% and 59%. The non-GAAP operating margin is anticipated between 33.1% and 35%.
The company anticipates non-GAAP earnings of $3.00-$3.41 per share. The consensus estimate for the same is pegged at $3.15.
Zacks Rank & Stocks to Consider
NXP Semiconductors currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the broader technology sector are Arista Networks (ANET - Free Report) , Dell Technologies (DELL - Free Report) and Badger Meter (BMI - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of Arista Networks have gained 4.2% in the year-to-date period. The long-term earnings growth rate for ANET is 17.48%.
Shares of Dell Technologies have gained 52.3% in the year-to-date period. The long-term earnings growth rate for DELL is projected at 12%.
Shares of Badger Meter have gained 17.5% in the year-to-date period. The long-term earnings growth rate for BMI is 15.57%.
Research Chief Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
Free: See Our Top Stock And 4 Runners Up
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