- NXP Semiconductors reported adjusted earnings per share (EPS) of $3.18 for the fourth quarter, exceeding expectations of $3.14, despite being lower than the previous year’s $3.71.
- The company’s reported EPS was $1.93, compared to $2.68 in the same period last year.
- Total revenue stood at $3.11 billion, a decrease of 9.1% year-over-year, but slightly above the estimated $3.1 billion.
- Automotive sector revenue was $1.79 billion, down 5.7% from last year but higher than the forecasted $1.74 billion.
- Revenue from Industrial & IoT was $516 million, reflecting a significant 22% year-over-year decline, missing the $533 million estimate.
- Mobile revenue fell 2.5% to $396 million, marginally missing the estimate of $397.2 million.
- The Communications Infrastructure & Other revenue segment recorded $409 million, a 10% decrease from last year, below the $429.6 million estimate.
- Adjusted gross margin was maintained at 57.5%, consistent with expectations but slightly down from last year’s 58.7%.
- Adjusted operating income fell by 13% year-over-year to $1.07 billion, in line with the $1.06 billion estimate.
- The adjusted operating margin was 34.2%, meeting projections but lower than last year’s 35.6%.
- Research and development (R&D) expenses decreased by 6% to $612 million, surpassing the estimate of $573.9 million.
- Inventory levels rose by 10% year-over-year to $2.36 billion, exceeding the $2.14 billion estimate.
- Capital expenditure decreased by 26% to $130 million, well below the estimated $177.6 million.
- Adjusted free cash flow dropped dramatically by 70% to $292 million, significantly below the estimated $866.9 million.
- Forecasts for the first quarter include adjusted EPS between $2.39 and $2.79, with a midpoint slightly below the $2.69 estimate.
- Projected revenue for the first quarter is between $2.73 billion and $2.93 billion, with the upper range meeting the $2.92 billion estimate.
- The first quarter EPS is expected to be between $1.75 and $2.14, aligning with the top-end estimate of $2.14.
- Analysts’ recommendations include 25 buys, 8 holds, and 1 sell.
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Nxp Semiconductors Nv on Smartkarma
Analyst coverage on Smartkarma by Nicolas Baratte delves into the bearish sentiments surrounding NXP Semiconductors NV and industry peers Renesas and STMicro. The insight highlights a cautious outlook for the auto and industrial semiconductor sectors, attributing it to high inventories and a slowdown in end-demand. Despite the seemingly attractive valuations of NXP, Renesas, and STMicro stocks, the analyst foresees Consensus revising down estimates until the second quarter of 2025 due to prevailing market conditions.
Nicolas Baratte‘s research report emphasizes the challenges faced by these semiconductor companies, with a focus on Renesas signaling a more cautious outlook and weaker end-demand. The report poses a critical question to investors: whether to consider buying stocks at low valuations or after downward revisions have stabilized. The analysis underscores a prolonged period of downward revisions expected in the view of the analyst, despite the current affordability of these stocks.
A look at Nxp Semiconductors Nv Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 3 | |
| Growth | 4 | |
| Resilience | 3 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 3.0 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Based on the Smartkarma Smart Scores, Nxp Semiconductors Nv has a positive long-term outlook. The company scores well in areas such as Growth and Resilience, indicating a promising future. With a high score in Growth, Nxp Semiconductors Nv is expected to continue expanding and developing in the semiconductor industry.
Additionally, the company’s decent scores in Dividend and Momentum further support its potential for long-term success. Nxp Semiconductors Nv‘s focus on designing semiconductors and software for various applications positions it well in the market, ensuring a diverse range of products that cater to different industries.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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