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NXP Semiconductors N.V. (NXPI - Free Report) reported fourth-quarter 2021 non-GAAP earnings of $3.08 per share, which outpaced the Zacks Consensus Estimate by 2.93%. Further, the figure increased 14.9% year over year.
Revenues of $3.04 billion surpassed the Zacks Consensus Estimate of $2.95 billion. The figure was up 21% from the year-ago period’s level.
Top-line growth was driven by a strong performance across automotive, industrial & IoT, and communication infrastructure & others end markets in the reported quarter.
End-Market Detail
Automotive generated $1.55 billion of revenues (contributing 51% to the total revenues), reflecting a year-over-year increase of 30%.
Revenues from Industrial & IoT were $661 million (22% of total revenues), which rose 29% from the prior-year quarter’s level.
Revenues from Mobile were $374 million (12% of total revenues), down 9% from the year-ago level.
Communication Infrastructure & Others generated $457 million of revenues (which contributed 15% to the total revenues), up 16% year over year.
NXP Semiconductors N.V. Price, Consensus and EPS Surprise
The non-GAAP gross margin was 57.3%, which expanded 440 basis points (bps) from the year-ago quarter’s level.
Operating expenses were $900 million, up 8.6% year over year. As a percentage of revenues, the figure significantly contracted 350 bps year over year to 29.6%.
The non-GAAP operating margin of 34.9% for the reported quarter expanded 440 bps from the prior-year period’s level.
Balance Sheet & Cash Flow
As of Dec 31, 2021, cash and cash equivalent balance was $2.8 billion, up from $2.3 billion as of Oct 3, 2021.
Inventories were $1.19 billion at the end of the fourth quarter, up from $1.17 billion in the third quarter. Accounts receivables decreased to $923 million from $979 million in the previous quarter.
Long-term debt was $10.6 billion at the end of the quarter under review compared with $8.6 billion in the last reported quarter.
NXPI generated a cash flow of $785 million in the fourth quarter, down from $924 million in the third quarter.
Its capex investment stood at $266 million. NXPI generated a free cash flow of $519 million in the reported quarter.
In the fourth quarter, NXP Semiconductors returned $900 million to its shareholders, of which shares worth $750 million were repurchased and dividends of $150 million paid.
Q122 Guidance
For first-quarter 2022, NXP Semiconductors expects revenues of $3.025-$3.175 billion, suggesting growth of 18-24% from the year-ago quarter’s reported figure. The Zacks Consensus Estimate is pegged at $2.95 billion, lower than the mid-point of NXP Semiconductors’ expected range.
NXPI expects a non-GAAP gross margin between 56.8% and 57.8%. The non-GAAP operating margin is anticipated between 34.2% and 35.7%.
Zacks Rank & Stocks to Consider
Currently, NXP Semiconductors has a Zacks Rank #3 (Hold).
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NXP Semiconductors (NXPI) Q4 Earnings Beat, Revenues Rise Y/Y
NXP Semiconductors N.V. (NXPI - Free Report) reported fourth-quarter 2021 non-GAAP earnings of $3.08 per share, which outpaced the Zacks Consensus Estimate by 2.93%. Further, the figure increased 14.9% year over year.
Revenues of $3.04 billion surpassed the Zacks Consensus Estimate of $2.95 billion. The figure was up 21% from the year-ago period’s level.
Top-line growth was driven by a strong performance across automotive, industrial & IoT, and communication infrastructure & others end markets in the reported quarter.
End-Market Detail
Automotive generated $1.55 billion of revenues (contributing 51% to the total revenues), reflecting a year-over-year increase of 30%.
Revenues from Industrial & IoT were $661 million (22% of total revenues), which rose 29% from the prior-year quarter’s level.
Revenues from Mobile were $374 million (12% of total revenues), down 9% from the year-ago level.
Communication Infrastructure & Others generated $457 million of revenues (which contributed 15% to the total revenues), up 16% year over year.
NXP Semiconductors N.V. Price, Consensus and EPS Surprise
NXP Semiconductors N.V. price-consensus-eps-surprise-chart | NXP Semiconductors N.V. Quote
Operating Results
The non-GAAP gross margin was 57.3%, which expanded 440 basis points (bps) from the year-ago quarter’s level.
Operating expenses were $900 million, up 8.6% year over year. As a percentage of revenues, the figure significantly contracted 350 bps year over year to 29.6%.
The non-GAAP operating margin of 34.9% for the reported quarter expanded 440 bps from the prior-year period’s level.
Balance Sheet & Cash Flow
As of Dec 31, 2021, cash and cash equivalent balance was $2.8 billion, up from $2.3 billion as of Oct 3, 2021.
Inventories were $1.19 billion at the end of the fourth quarter, up from $1.17 billion in the third quarter. Accounts receivables decreased to $923 million from $979 million in the previous quarter.
Long-term debt was $10.6 billion at the end of the quarter under review compared with $8.6 billion in the last reported quarter.
NXPI generated a cash flow of $785 million in the fourth quarter, down from $924 million in the third quarter.
Its capex investment stood at $266 million. NXPI generated a free cash flow of $519 million in the reported quarter.
In the fourth quarter, NXP Semiconductors returned $900 million to its shareholders, of which shares worth $750 million were repurchased and dividends of $150 million paid.
Q122 Guidance
For first-quarter 2022, NXP Semiconductors expects revenues of $3.025-$3.175 billion, suggesting growth of 18-24% from the year-ago quarter’s reported figure. The Zacks Consensus Estimate is pegged at $2.95 billion, lower than the mid-point of NXP Semiconductors’ expected range.
NXPI expects a non-GAAP gross margin between 56.8% and 57.8%. The non-GAAP operating margin is anticipated between 34.2% and 35.7%.
Zacks Rank & Stocks to Consider
Currently, NXP Semiconductors has a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader technology sector are Broadcom (AVGO - Free Report) , AMETEK (AME - Free Report) and Advanced Micro Devices (AMD - Free Report) . While Broadcom sports a Zacks Rank #1 (Strong Buy), AMETEK and Advanced Micro Devices carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Broadcom has gained 23.7% over a year. The long-term earnings growth rate for AVGO is currently projected at 14.52%.
AMETEK has gained 17% over a year. The long-term earnings growth rate for AME is currently projected at 10.42%.
Advanced Micro Devices has gained 29.5% over a year. The long-term earnings growth rate for AMD is currently projected at 46.2%.