Core Insights - NXP Semiconductors reported a revenue of $2.84 billion for Q1 2025, reflecting a year-over-year decline of 9.3% and an EPS of $2.64, down from $3.24 a year ago [1] - The revenue exceeded the Zacks Consensus Estimate of $2.83 billion by 0.30%, while the EPS surpassed the consensus estimate of $2.59 by 1.93% [1] Revenue Breakdown - Automotive revenue was $1.67 billion, slightly below the average estimate of $1.69 billion, marking a year-over-year decline of 7.2% [4] - Communications Infrastructure & Other revenue reached $315 million, exceeding the average estimate of $302.16 million, but showing a significant year-over-year decline of 21.1% [4] - Industrial & IoT revenue was $508 million, slightly below the average estimate of $512.51 million, with a year-over-year decline of 11.5% [4] - Mobile revenue was $338 million, surpassing the average estimate of $325.45 million, but still reflecting a year-over-year decline of 3.2% [4] Stock Performance - NXP shares have returned +1.9% over the past month, contrasting with a -4.3% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating potential for outperformance in the near term [3]

Group 1: Earnings Performance - NXP Semiconductors reported quarterly earnings of $2.64 per share, exceeding the Zacks Consensus Estimate of $2.59 per share, but down from $3.24 per share a year ago, representing an earnings surprise of 1.93% [1] - The company posted revenues of $2.84 billion for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 0.30%, compared to $3.13 billion in revenues a year ago [2] - Over the last four quarters, NXP has surpassed consensus EPS estimates three times and topped consensus revenue estimates three times [2] Group 2: Stock Performance and Outlook - NXP shares have declined approximately 6.9% since the beginning of the year, while the S&P 500 has seen a decline of 6.1% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the upcoming quarter is $2.67 on revenues of $2.86 billion, and for the current fiscal year, it is $11.64 on revenues of $11.93 billion [7] Group 3: Industry Context - The Semiconductor - Analog and Mixed industry, to which NXP belongs, is currently ranked in the top 29% of over 250 Zacks industries, indicating a favorable outlook [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, suggesting that tracking these revisions can be beneficial for investors [5] - The favorable estimate revisions trend for NXP has resulted in a Zacks Rank 2 (Buy) for the stock, indicating expectations of outperforming the market in the near future [6]

Financial Performance - NXP reported Q1 2025 revenue of $2.84 billion, down 9% year-on-year, aligning with the midpoint of guidance[2][5]. - NXP Semiconductors reported revenue of $2.835 billion for the three months ended March 30, 2025, a decrease of 8.8% compared to $3.111 billion in the previous quarter and a decrease of 9.3% from $3.126 billion in the same quarter last year[22]. - The automotive segment generated $1.67 billion in revenue, down 7% year-on-year[7]. - Non-GAAP diluted EPS for Q1 2025 was $2.64, a decrease of 19% compared to Q1 2024[5][6]. - NXP reported a net income of $497 million for the three months ended March 30, 2025, a decrease of 29% compared to $705 million for the same period in 2024[24]. - The company reported a GAAP net income of $497 million for the three months ended March 30, 2025, compared to $505 million in the previous quarter and $644 million in the same quarter last year[30]. - Non-GAAP net income attributable to stockholders was $673 million, compared to $817 million in the same quarter last year, reflecting a decline of 17.6%[25]. - NXP's diluted GAAP net income per share was $1.92, down from $2.47 in the same quarter last year[26]. Margins and Profitability - GAAP gross margin was 55.0%, while non-GAAP gross margin was 56.1%[5][6]. - Gross profit for the same period was $1.560 billion, resulting in a gross margin of approximately 55.1%, down from 54% in the previous quarter and 57% in the same quarter last year[22]. - Operating income for the quarter was $723 million, reflecting an operating margin of 25.5%, compared to $675 million and 21.7% in the previous quarter[22]. - The company reported a non-GAAP operating income of $904 million, with a non-GAAP operating margin of 31.9%[25]. - The adjusted EBITDA (Non-GAAP) for the latest quarter was $1,073 million, down from $1,240 million in the previous quarter and $1,252 million a year ago[30]. - The trailing twelve-month adjusted EBITDA (Non-GAAP) totaled $4,885 million, a decrease from $5,064 million in the previous period and $5,395 million a year ago[30]. Cash Flow and Capital Management - Cash flow from operations was $565 million, resulting in non-GAAP free cash flow of $427 million, with capital return of $561 million[5][8]. - Non-GAAP free cash flow for the three months ended March 30, 2025, was $427 million, an increase from $292 million in the previous quarter but a decrease from $627 million in the same quarter last year[31]. - The trailing twelve-month non-GAAP free cash flow was $1,889 million, down from $2,089 million in the previous period and $2,933 million a year ago[31]. - The company's non-GAAP free cash flow as a percentage of revenue was 15% for the latest quarter, down from 17% in the previous quarter and 22% a year ago[31]. - Net cash provided by operating activities was $565 million for the latest quarter, compared to $391 million in the previous quarter and $851 million a year ago[31]. Assets and Liabilities - Total current assets increased to $8.025 billion as of March 30, 2025, up from $7.305 billion at the end of the previous quarter[23]. - Cash and cash equivalents rose to $3.988 billion, compared to $3.292 billion at the end of the previous quarter[23]. - Total liabilities increased to $15.503 billion, up from $14.854 billion at the end of the previous quarter[23]. - NXP's total equity stood at $9.677 billion, an increase from $9.531 billion at the end of the previous quarter[23]. Strategic Initiatives - NXP announced the acquisition of Kinara Inc. for $307 million to enhance edge intelligence solutions[8]. - The company secured a €1 billion loan from the European Investment Bank to support R&D investments[8]. - NXP introduced the S32K5 family of automotive microcontrollers, the first 16nm FinFET MCU with embedded MRAM[8]. - The company plans to execute additional share repurchases totaling $90 million post-Q1 2025[5]. Future Outlook and Risks - NXP's guidance for Q2 2025 projects total revenue between $2.8 billion and $3.0 billion, reflecting a year-on-year decline of 4% to 10%[10][12]. - NXP's forward-looking statements highlight potential risks including market demand fluctuations and supply chain disruptions due to geopolitical tensions[20]. Conference Call - The company plans to host a conference call on April 29, 2025, to discuss the first quarter 2025 results in detail[17].

Core Insights - NXP Semiconductors reported first-quarter revenue of $2.84 billion, aligning with guidance, but down 9% year-on-year, indicating challenges in the current market environment [1][4][6] - CEO Kurt Sievers announced his retirement at the end of 2025, with Rafael Sotomayor appointed as his successor, ensuring a smooth transition [2][3] - The company is focusing on managing controllable factors to maintain profitability amid external uncertainties, including tariffs [1][4] Financial Performance - Revenue for Q1 2025 was $2.84 billion, a decrease of 9% compared to both Q4 2024 and Q1 2024 [4][6] - GAAP gross margin was reported at 55.0%, while non-GAAP gross margin was 56.1% [4][6] - GAAP diluted net income per share was $1.92, down 22% year-on-year, while non-GAAP diluted net income per share was $2.64, down 19% year-on-year [4][6] Cash Flow and Capital Return - Cash flow from operations was $565 million, with net capital expenditures of $138 million, resulting in non-GAAP free cash flow of $427 million [4][6] - The company returned $561 million to shareholders, representing 131% of non-GAAP free cash flow, through share buybacks and dividends [4][6] Strategic Developments - NXP announced the acquisition of Kinara Inc. for $307 million to enhance its capabilities in energy-efficient neural processing units [5] - A €1 billion loan from the European Investment Bank was secured to support R&D investments across its semiconductor solutions portfolio [4][5] - The company expanded its partnership with Honeywell to accelerate aviation product development, leveraging NXP's technology for improved operational efficiency [4][5] Market Segmentation - Revenue breakdown for Q1 2025 included $1.67 billion from Automotive, $508 million from Industrial & IoT, $338 million from Mobile, and $315 million from Communications Infrastructure & Other [7][6] - Year-on-year declines were noted across all segments, with Automotive down 7%, Industrial & IoT down 11%, Mobile down 3%, and Communications Infrastructure down 21% [7][6] Guidance - For Q2 2025, NXP expects total revenue between $2.80 billion and $3.00 billion, reflecting a year-on-year decline of 4% to 10% [10]

Group 1 - NXP Semiconductors is well-positioned to maintain its earnings-beat streak in the upcoming report, with a history of topping earnings estimates [1][5] - The company reported earnings of $3.18 per share, exceeding the Zacks Consensus Estimate of $3.14 per share, resulting in a surprise of 1.27% [2] - NXP's average surprise for the past two quarters is 0.93%, indicating consistent performance [1] Group 2 - Estimates for NXP have been trending higher due to its earnings surprise history, and it has a positive Zacks Earnings ESP of +0.71% [5][8] - The combination of a positive Earnings ESP and a Zacks Rank 3 (Hold) suggests a high probability of another earnings beat, with nearly 70% success rate for stocks with this combination [6][8] - The next earnings report for NXP is expected to be released on April 28, 2025 [8]

Core Viewpoint - NXP Semiconductors is expected to report a decline in both revenues and earnings for the first quarter of 2025, primarily due to challenges in the automobile and communication infrastructure markets, alongside macroeconomic pressures [1][2][3]. Revenue Expectations - NXP anticipates first-quarter revenues between $2.725 billion and $2.925 billion, with a consensus estimate of $2.83 billion, reflecting a 9.6% year-over-year decline [1]. - The estimated revenues for the Industrial & IoT segment are $498.8 million, indicating a 13.1% year-over-year decline, while the Mobile end market is expected to see a slight increase of 0.5% to $350.9 million [4]. - Automotive revenues are projected at $1.62 billion, representing a 10% decline from the previous year, and revenues from the Communications Infrastructure & Others segment are estimated at $351.3 million, down 12% year-over-year [6]. Earnings Projections - NXP expects non-GAAP earnings per share between $2.39 and $2.79, with a consensus estimate of $2.59 per share, indicating a 20% year-over-year decline [2]. - The company has historically beaten earnings estimates three out of the last four quarters, with an average surprise of 0.94% [2]. Market Challenges - The performance is likely to be negatively impacted by ongoing inventory corrections in the automotive sector and a slowdown in demand from European car manufacturers [3]. - The communications infrastructure sector is facing challenges due to a shift towards gallium nitride products and reduced base station deployments, compounded by macroeconomic headwinds and geopolitical tensions [5]. Positive Factors - Despite the challenges, NXP's performance may benefit from an expanding portfolio and positive momentum in the Industrial & IoT sectors, particularly driven by demand in China and the Asia Pacific region [7]. - The company secured a €1 billion loan from the European Investment Bank to support research, development, and innovation, which is expected to positively influence the upcoming quarter's performance [7]. Earnings Prediction Model - The current model does not predict an earnings beat for NXP, as it has an Earnings ESP of 0.00% and a Zacks Rank of 3 (Hold) [8][9].

Core Viewpoint - Analysts project that NXP Semiconductors will report a quarterly earnings of $2.59 per share, reflecting a year-over-year decline of 20.1%, with revenues expected to be $2.83 billion, down 9.6% from the same quarter last year [1] Earnings Estimates - The consensus EPS estimate for the quarter has not changed over the past 30 days, indicating that analysts have not revised their initial projections [2] - Changes in earnings estimates are crucial for predicting investor reactions, as empirical research shows a strong correlation between earnings estimate revisions and short-term stock performance [3] Revenue Projections - Analysts estimate 'Revenue- Automotive' to be $1.69 billion, a decrease of 6.5% from the prior-year quarter [5] - 'Revenue- Communications Infrastructure & Other' is projected to reach $302.16 million, indicating a decline of 24.3% year over year [5] - 'Revenue- Industrial & IoT' is expected to be $512.51 million, reflecting a 10.7% decrease from the previous year [6] - 'Revenue- Mobile' is forecasted to be $325.45 million, suggesting a decline of 6.8% year over year [6] Stock Performance - Over the past month, NXP shares have decreased by 17.4%, compared to a 6.6% decline in the Zacks S&P 500 composite [7] - NXP holds a Zacks Rank 3 (Hold), indicating that its performance is likely to align with the overall market in the near term [7]

Company Performance - NXP Semiconductors closed at $174.66, with a daily increase of +1.84%, underperforming the S&P 500's gain of 2.51% [1] - The stock has decreased by 18.77% over the past month, compared to a 12.18% loss in the Computer and Technology sector and an 8.86% loss in the S&P 500 [1] Upcoming Earnings Report - The company is set to release its earnings on April 28, 2025, with an expected EPS of $2.59, reflecting a 20.06% decline year-over-year [2] - Revenue is projected to be $2.83 billion, down 9.58% from the same quarter last year [2] Fiscal Year Projections - For the entire fiscal year, earnings are estimated at $11.64 per share and revenue at $11.93 billion, indicating declines of -11.08% and -5.44% respectively from the previous year [3] Analyst Forecast Revisions - Recent revisions to analyst forecasts for NXP Semiconductors are important as they reflect short-term business trends, with positive revisions indicating optimism about the company's outlook [4] Zacks Rank and Valuation - NXP Semiconductors currently holds a Zacks Rank of 4 (Sell), with no changes in the consensus EPS estimate over the past month [6] - The company has a Forward P/E ratio of 14.74, which is lower than the industry average of 24.6, and a PEG ratio of 1.86 compared to the industry average of 1.68 [7] Industry Context - The Semiconductor - Analog and Mixed industry, part of the Computer and Technology sector, has a Zacks Industry Rank of 89, placing it in the top 36% of over 250 industries [8]

Core Viewpoint - NXP Semiconductors N.V. will announce its financial results for Q1 2025 on April 28, 2025, and will host a conference call on April 29, 2025, at 8:00 a.m. EDT [1][2] Company Overview - NXP Semiconductors N.V. is a key player in providing innovative solutions across automotive, industrial & IoT, mobile, and communications infrastructure markets [3] - The company reported a revenue of $12.61 billion in 2024, indicating its significant market presence and operational scale [3]

Core Viewpoint - NXP Semiconductors N.V. will release its financial results for Q1 2025 on April 28, 2025, and will host a conference call on April 29, 2025, at 8:00 a.m. EDT [1][2] Company Overview - NXP Semiconductors N.V. is a key player in providing innovative solutions across automotive, industrial & IoT, mobile, and communications infrastructure markets [3] - The company reported a revenue of $12.61 billion in 2024, indicating its significant market presence and operational scale [3]