Advertisement
Canada markets closed

  • S&P/TSX

    21,969.24
    +83.86 (+0.38%)
     

  • S&P 500

    5,099.96
    +51.54 (+1.02%)
     

  • DOW

    38,239.66
    +153.86 (+0.40%)
     

  • CAD/USD

    0.7316
    -0.0007 (-0.09%)
     

  • CRUDE OIL

    83.66
    +0.09 (+0.11%)
     

  • Bitcoin CAD

    87,293.07
    -1,146.51 (-1.30%)
     

  • CMC Crypto 200

    1,332.15
    -64.39 (-4.61%)
     

  • GOLD FUTURES

    2,349.60
    +7.10 (+0.30%)
     

  • RUSSELL 2000

    2,002.00
    +20.88 (+1.05%)
     

  • 10-Yr Bond

    4.6690
    -0.0370 (-0.79%)
     

  • NASDAQ

    15,927.90
    +316.14 (+2.03%)
     

  • VOLATILITY

    15.03
    -0.34 (-2.21%)
     

  • FTSE

    8,139.83
    +60.97 (+0.75%)
     

  • NIKKEI 225

    37,934.76
    +306.28 (+0.81%)
     

  • CAD/EUR

    0.6838
    +0.0017 (+0.25%)
     

NXP Semiconductors (NXPI) Q3 Earnings Surpass Estimates

Zacks Equity Research

NXP Semiconductors N.V. NXPI delivered third-quarter 2019 earnings of $2.42 per share, which beat the Zacks Consensus Estimate of $1.93 and also increased 20.4% from the year-ago quarter.

Moreover, NXP Semiconductors’ quarterly revenues of $2.27 billion surpassed the consensus estimate of $2.24 billion. However, on a year-over-year basis, the top line fell 7%. Improvement in Mobile revenues was a positive while decline in revenues in other major end markets was a dampener.

Notably, macroeconomic volatility coupled with the lull in the communications infrastructure market is a key overhang. Uncertainty in the intermediate demand environment poses a key threat to the company as well.

Nonetheless, the company’s product portfolio investments, which are addressing the long-term requirements of customers are making management hopeful.

ADVERTISEMENT

NXP Semiconductors N.V. Price, Consensus and EPS Surprise

NXP Semiconductors N.V. Price, Consensus and EPS Surprise
NXP Semiconductors N.V. Price, Consensus and EPS Surprise

NXP Semiconductors N.V. price-consensus-eps-surprise-chart | NXP Semiconductors N.V. Quote

Top Line Details

NXP Semiconductor’s Automotive revenues came in at $1.05 billion, down 7% year over year. On a sequential basis, the same improved 2%.

Industrial IoT revenues decreased 14% to $426 million. However, the same grew 8% sequentially.

Revenues from Communications Infrastructure and Other of $470 million dipped 2% year over year and 6% sequentially.

Mobile revenues inched up 2% year over year and 8% sequentially to $321 million.

Margins

NXP Semiconductors reported non-GAAP gross profit of $1.23 billion, down 6% year over year. However, gross margin expanded 70 basis points (bps) to 53.7%.

Adjusted operating income decreased 6% from the year-earlier quarter to $687 million. Adjusted operating margin of 30.3% expanded 30 bps, driven by good expense control.

Balance Sheet and Other Financial Details

NXP Semiconductors exited the third quarter with cash and cash equivalents of $3.54 billion compared with $3.03 billion in the previous quarter.

Long-term debt was $67.363 billion compared with $7.361 billion in the second quarter.

Cash flow from operations was $746 million while free cash flow was $631 million.

During the quarter, NXP Semiconductors repurchased 0.09 million shares for around $9 million and paid out $70 million worth of cash dividends.

Guidance

For the fourth quarter, revenues are anticipated in the range of $2.24-$2.3 billion, representing a year-over-year decline of 6%, the mid-point being $2.27 billion. The Zacks Consensus Estimate for fourth-quarter revenues is pegged at $2.27 billion.

Non-GAAP gross profit is projected within $1.208-$1.254 billion while non-GAAP gross margin is expected between 53.9% and 54.5%.

Non-GAAP operating income is likely to be within $670-$702 million while operating margin is expected between 29.9% and 30.5%.

Zacks Rank and Stocks to Consider

NXP Semiconductors currently carries a Zacks Rank #3 (Hold). A few better-ranked stocks in the broader technology sector are Benefitfocus BNFT, Five9, Inc. FIVN and NIC EGOV, each flaunting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Long-term earnings growth rate for Benefitfocus, Five9 and NIC is currently estimated at 20%, 10% and 18%, respectively.

Breakout Biotech Stocks with Triple-Digit Profit Potential

The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.

Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +98%, +119% and +164% in as little as 1 month. The stocks in this report could perform even better.

See these 7 breakthrough stocks now>>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Five9, Inc. (FIVN) : Free Stock Analysis Report
 
Benefitfocus, Inc. (BNFT) : Free Stock Analysis Report
 
NIC Inc. (EGOV) : Free Stock Analysis Report
 
NXP Semiconductors N.V. (NXPI) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research