A month has gone by since the last earnings report for NXP Semiconductors (NXPI Quick QuoteNXPI - Free Report) . Shares have added about 4.3% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is NXP due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.

NXPI Q4 Earnings and Revenue Beat Estimates

NXP Semiconductors reported fourth-quarter 2024 non-GAAP earnings of $3.18 per share, beating the Zacks Consensus Estimate by 1.3%. The figure declined 14.3% year over year.

NXP Semiconductors’ top line of $3.11 billion came higher than the midpoint of management’s guidance. The figure declined 9.1% year over year. The figure beat the Zacks Consensus Estimate of $3.10 billion by 0.3%.

The automotive segment, the largest segment of NXPI, outshined the underperformance of Mobile, Industrial & IoT, and Communication Infrastructure & Others segments, which lagged the Zacks Consensus Estimate in the reported quarter.

NXPI’s Q4 2024 Details

Revenues from Automotive (57.5% of total revenues) in the fourth quarter were $1.79 billion, down 6% year over year. This figure surpassed the consensus mark of $1.732 billion.

Fourth-quarter revenues from Mobile (12.7% of total revenues) were $396 million, down 2% year over year. The figure missed the consensus mark of $399 million.

Revenues from Communication Infrastructure & Others (13.1% of total revenues) in the fourth quarter were $409 million, down 10% from the year-ago reported figure. This figure missed the consensus mark of $432.7 million.

Revenues from Industrial & IoT (16.6% of total revenues) were $516 million, which declined 22% from the year-ago level and lagged the consensus mark of $532.7 million.

NXPI’s non-GAAP gross profit in the fourth quarter was $1.789 billion, down 11% year over year. The non-GAAP gross margin contracted 120 basis points (bps) on a year-over-year basis to 57.5%.

For the fourth quarter, non-GAAP operating income declined 12.6% year over year to $1.07 billion. Operating margin contracted 140 bps to 34.2% from the year-ago quarter.

NXPI’s Balance Sheet & Cash Flow

As of Dec. 31, 2024, NXPI’s cash and cash equivalent, and short-term deposit balance was $3.29 billion, up from $3.15 billion as of Sept. 29, 2024.

The long-term debt was $10.354 billion at the end of the quarter under review compared with $9.683 billion at the end of the last reported quarter.

Cash flow from operations was $391 million, down 49.8% from the previous quarter’s levels. The company’s capex investment was $130 million in the reported quarter. NXPI generated a free cash flow of $292 million in the fourth quarter.

In the fourth quarter, NXPI made dividend payments of $258 million and repurchased shares worth $455 million.

NXPI’s Q1 Guidance

For first-quarter 2025, NXPI expects revenues in the range of $2.725-$2.925 billion, indicating a decline of 6-13% year over year. NXPI expects adjusted earnings in the band of $2.39-$2.79 per share.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a downward trend in estimates review.

VGM Scores

Currently, NXP has a poor Growth Score of F, a grade with the same score on the momentum front. However, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.

Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, NXP has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.