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NXP (NXPI) Down 13% Since Last Earnings Report: Can It Rebound?
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It has been about a month since the last earnings report for NXP Semiconductors (NXPI - Free Report) . Shares have lost about 13% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is NXP due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
NXP Q4 Earnings & Revenues Surpass Estimates
NXP Semiconductors reported fourth-quarter 2021 non-GAAP earnings of $3.08 per share, which outpaced the Zacks Consensus Estimate by 2.3%. 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.
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.
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%.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates revision.
The consensus estimate has shifted 9.72% due to these changes.
VGM Scores
Currently, NXP has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise NXP has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
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NXP (NXPI) Down 13% Since Last Earnings Report: Can It Rebound?
It has been about a month since the last earnings report for NXP Semiconductors (NXPI - Free Report) . Shares have lost about 13% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is NXP due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
NXP Q4 Earnings & Revenues Surpass Estimates
NXP Semiconductors reported fourth-quarter 2021 non-GAAP earnings of $3.08 per share, which outpaced the Zacks Consensus Estimate by 2.3%. 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.
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.
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%.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates revision.
The consensus estimate has shifted 9.72% due to these changes.
VGM Scores
Currently, NXP has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise NXP has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.