Key Points Industry/Company - **Company**: NXP Semiconductors N.V. (NASDAQ:NXPI) - **Industry**: Semiconductor, Automotive, Communication Infrastructure Core Points and Arguments - **Handling the Cycle**: NXP managed the cycle with stability by maintaining lean channel inventory and working with direct customers to manage inventory levels. - **Growth Confidence**: Confidence in second half growth comes from direct customer digestion processes, company-specific ramps, and improved distribution trends in China. - **Channel Refill**: Channel refill will be methodical, starting at 1.7 months in Q2 and potentially increasing in Q3 and Q4, but not reaching 2.5 months in 2024. - **Inventory Management**: Inventory levels are expected to remain around 144 days of inventory on the balance sheet, with a focus on maintaining low inventory levels and high inventory turnover. - **Software-Defined Vehicle**: NXP is excited about the software-defined vehicle trend, with a focus on S32 core ride family and its compatibility across various processing levels. - **Content Expansion**: NXP's content expansion in the software-defined vehicle includes radar, electrification, and S32 family products. - **Competitive Environment**: NXP sees Renesas as the primary competitor in the S32 family, with Infineon and ST focusing on zonal players. Microchip and TI are not considered direct competitors. - **China Market**: NXP is working with local fabs and partners to ensure a secure supply chain in China, while maintaining a competitive cost structure. - **Gross Margins**: Gross margins are expected to remain at the high end of the current model, with tailwinds from distribution channel refill, improved utilization rates, and expansion into mass market distribution. - **Pricing**: Pricing is expected to remain neutral in 2024, with potential for low single-digit annual price declines in 2025 and beyond. - **Capital Allocation**: Capital allocation strategy focuses on returning excess free cash flow to shareholders through dividends and share buybacks. Other Important Points - **Direct Customer Relationships**: NXP is working closely with OEMs and engineers to develop software-defined vehicle solutions. - **R&D Resources**: NXP is investing in software engineers and computer science engineers to support the software-defined vehicle trend. - **Manufacturing**: NXP is exploring joint ventures and partnerships for external manufacturing, with a focus on maintaining a competitive cost structure. - **IP Protection**: NXP is taking steps to protect intellectual property during manufacturing in China, including working with trusted fabs and partners.

It has been about a month since the last earnings report for NXP Semiconductors (NXPI) . Shares have added about 9.2% 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 catalysts. NXP Semiconductors Q1 Earnings Beat EstimatesN ...

Investment Rating - The report does not explicitly state an investment rating for NXP Semiconductors Core Views - NXP Semiconductors reported Q1 FY2024 revenue of $3.126 billion, a year-over-year increase of 0.16% but a quarter-over-quarter decline of 8.65%, aligning with market expectations [2][3][8] - The company anticipates Q2 FY2024 revenue to be between $3.025 billion and $3.225 billion, representing a year-over-year decline of 8% to 2% and a quarter-over-quarter change of -3% to +3% [15][17] Summary by Sections Overall Revenue Situation - For Q1 FY2024, NXP achieved revenue of $3.126 billion, with a Non-GAAP gross margin of 58.2%, slightly above the guidance midpoint of 58.0% [3][8][10] - Non-GAAP net profit was $840 million, exceeding market expectations of $823 million [3][8] Business Progress - Automotive revenue was $1.804 billion, down 1% year-over-year and down 5% quarter-over-quarter, accounting for 57.71% of total revenue [13][21] - Industrial & IoT revenue reached $574 million, up 14% year-over-year but down 13% quarter-over-quarter, representing 18.36% of total revenue [13][21] - Mobile revenue was $349 million, up 34% year-over-year but down 14% quarter-over-quarter, making up 11.16% of total revenue [13][21] - Communication & Other revenue was $399 million, down 25% year-over-year and down 12% quarter-over-quarter, accounting for 12.76% of total revenue [13][21] Capital Expenditure - Capital expenditure for Q1 FY2024 was $224 million, representing 7% of revenue [11][23] Inventory - Channel inventory days at the end of Q1 FY2024 were approximately 1.6 months, below the long-term target of 2.5 months; the company's own inventory days increased to 144 days [12][24] Q2 Company Guidance - NXP expects Q2 FY2024 Non-GAAP revenue to be between $3.025 billion and $3.225 billion, with a Non-GAAP gross margin of 58%-59% [15][17] - The company anticipates a year-over-year decline in automotive revenue, while industrial and IoT revenue is expected to grow [17][22] Mid to Long-term Outlook - NXP projects a compound annual growth rate (CAGR) of 8% to 12% from 2021 to 2024, with automotive business CAGR expected to be between 9% and 14% [18][22]

NXP Semiconductors (NXPI) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.Shares of this chipmaker have returned +19.9% over the past month versus the Zacks S&P 500 composite's +5% change. The Zacks Semiconductor - Analog and Mixed industry, to which NXP belongs, has gained 13.9% over this period. Now the key question is: Where could the stock be headed in the near ...

Core Viewpoint - NXP Semiconductors N.V. reported first-quarter 2024 non-GAAP earnings of $3.24 per share, exceeding expectations, while revenues of $3.13 billion slightly missed estimates, indicating mixed performance across different market segments [1][2]. Financial Performance - Non-GAAP earnings per share were $3.24, surpassing the Zacks Consensus Estimate by 1.9% and reflecting a year-over-year increase of 1.6% [1] - Revenues totaled $3.13 billion, missing the Zacks Consensus Estimate by 0.02% and showing a slight year-over-year increase of 0.2% [1] - The non-GAAP gross margin was reported at 58.2%, remaining flat year over year [3] - Non-GAAP operating margin was 34.5%, a decrease of 30 basis points from the previous year [3] Revenue Breakdown by End Market - Automotive revenues were $1.804 billion, accounting for 58% of total revenues, with a year-over-year decrease of 1% [2] - Industrial & IoT revenues reached $574 million, representing 18% of total revenues, up 14% year over year [2] - Mobile revenues were $349 million, making up 11% of total revenues, with a significant year-over-year increase of 34% [2] - Communication Infrastructure & Others generated $399 million, 13% of total revenues, down 25% year over year [2] Cash Flow and Balance Sheet - As of March 31, 2024, cash and cash equivalents totaled $3.3 billion, down from $4.27 billion at the end of the previous quarter [4] - Long-term debt was $10.178 billion, slightly up from $10.175 billion in the prior quarter [4] - Cash flow generated in the first quarter was $851 million, down from $1.14 billion in the previous quarter [4] - Free cash flow for the quarter was $627 million, with capital expenditures of $224 million [4] Guidance - For Q2 2024, NXP expects revenues between $3.025 billion and $3.225 billion, indicating a potential year-over-year decline of 5% at the midpoint [5] - The company anticipates non-GAAP gross margin between 58% and 59% and non-GAAP operating margin between 33.1% and 35% [5] - Non-GAAP earnings are projected to be between $3.00 and $3.41 per share, with the consensus estimate at $3.15 [5]

Key PointsNXP Semiconductors struggled in Q1, but results and guidance suggest that its soft-landing approach works.Analysts are leading the market to new highs, which may be reached soon. Cash flow and capital returns aid the outlook for higher share prices. 5 stocks we like better than NXP SemiconductorsNXP Semiconductors NASDAQ: NXPI is trending higher and on track to hit the $300 level. The company’s diversified business, position in the industrial chip market, and pivot back to growth are why. It will ...

NXP Semiconductors N.V. (NASDAQ:NXPI) Q1 2024 Earnings Conference Call April 30, 2024 8:00 AM ET Company Participants Jeff Palmer - SVP, IR Kurt Sievers - President and CEO Bill Betz - CFO Conference Call Participants Vivek Arya - Bank of America Securities Ross Seymore - Deutsche Bank C.J. Muse - Cantor Fitzgerald Chris Danely - Citi Gary Mobley - Wells Fargo Securities Stacy Rasgon - Bernstein Research Joshua Buchalter - TD Cowen Chris Caso - Wolfe Research Operator Hello, and thank you for standing by. W ...

NXP Semiconductors Reports First Quarter 2024 Results EINDHOVEN, The Netherlands, April 29, 2024 – NXP Semiconductors N.V. (NASDAQ: NXPI) today reported financial results for the first quarter, which ended March 31, 2024. "NXP delivered quarterly revenue of $3.13 billion, in-line with the midpoint of guidance with all our focus end-markets performing as expected. Our first-quarter results, guidance for the second quarter, and our early views into the second half of the year underpin a cautious optimism that ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to . Commission File Number: 001-34841 NXP Semiconductors N.V. (Exact name of registrant as specified in its charter) Netherlands 98-1144352 (State or other j ...

Key TakeawaysNXP shares jumped 6% in extended trading Monday after the Dutch-based chipmaker posted quarterly earnings and a current-quarter outlook that came in ahead of estimates. CEO Kurt Sievers said that the chipmaker remains cautiously optimistic about how it’s performing in an industry downturn and a challenging demand environment.Sales in the company’s industrial and IOT segment and mobile device chips unit helped offset weakness in its communications infrastructure and automotive chip businesses in ...