Financial Data and Key Metrics Changes - NXP reported Q2 revenue of $3.127 billion, down 5% year-on-year and flat sequentially [7][17] - Non-GAAP operating margin for Q2 was 34.3%, down 70 basis points year-on-year but up 30 basis points from guidance [7][18] - Non-GAAP gross margin was 58.6%, up 20 basis points year-on-year and 10 basis points above guidance [17][18] - Non-GAAP earnings per share for Q2 was $3.20, consistent with guidance [18] Business Line Data and Key Metrics Changes - Automotive revenue was $1.73 billion, down 7% year-on-year [8] - Industrial and IoT revenue increased to $616 million, up 7% year-on-year [8] - Mobile revenue reached $345 million, up 21% year-on-year [8] - Communication infrastructure revenue was $438 million, down 23% year-on-year [8] Market Data and Key Metrics Changes - Distribution inventory was 1.7 months, slightly up from 1.6 months in Q1 [7] - Inventory digestion at Tier 1 automotive customers is expected to extend into the second half of 2024 [9][10] - Demand in China and Asia Pacific for industrial IoT is improving, while European and North American markets remain soft [10] Company Strategy and Development Direction - NXP announced a strategic joint venture with Vanguard International Semiconductor to enhance manufacturing capabilities [13][14] - The joint venture will build a 300mm fab in Singapore, targeting automotive, industrial, consumer, and mobile markets [14][15] - NXP plans to invest $2.8 billion in the joint venture from 2024 to 2028, aiming for $4 billion in incremental annual revenue [15][24] Management's Comments on Operating Environment and Future Outlook - Management expects Q3 revenue to be $3.25 billion, down 5% year-on-year but up 4% sequentially [9][22] - The automotive market is anticipated to resume sequential growth in Q3, driven by company-specific drivers and reduced inventory digestion [9][10] - Management remains cautious about channel inventory levels, aiming to stage inventory in a controlled manner [12][61] Other Important Information - Total debt at the end of Q2 was $10.18 billion, with a cash balance of $3.26 billion [19] - NXP returned $570 million to shareholders in Q2, representing 99% of non-GAAP free cash flow [20] - The company expects non-GAAP gross margin for Q3 to be around 58.5% [22] Q&A Session Summary Question: What gives NXP confidence for sequential growth in Q4? - Management indicated that growth is driven by a re-acceleration in automotive and specific growth in RFID secure tagging, not just channel inventory refill [28][29] Question: Is the inventory digestion process behind OEMs and Tier 1s? - Management confirmed that inventory digestion is ongoing and varies significantly among Tier 1 customers, affecting growth expectations [31][34] Question: What is the outlook for the industrial and IoT segment? - Management noted that the core industrial business in the U.S. and Europe is facing demand issues, while growth is seen in China, particularly in consumer IoT [43][44] Question: How will capital allocation change with the new joint ventures? - Management reiterated that there will be no change in capital allocation policy, continuing to return cash to shareholders while investing in strategic ventures [46][48] Question: What is the growth profile of the RFID business? - Management clarified that RFID is part of a larger segment and continues to grow, but it does not constitute 50% of the segment [66]

NXP Semiconductors (NASDAQ:NXPI) stock is in focus today on some lackluster results and expectations. Specifically, the firm's slumping auto business caused revenue to drop last quarter. That also resulted in the chipmaker's third-quarter guidance coming in meaningfully below analysts' average estimate. NXPI stock is retreating 7% on the news as of this writing. NXP's Q2 Results and Q3 Guidance Based in the Netherlands, NXP reported Q2 EPS, excluding certain items, of $3.20 per share yesterday, slightly bel ...

NXP Investor Presentation Second Quarter 2024 July 2024 | Public | NXP and the NXP logo are trademarks of NXP B.V. All other product or service names are the property of their respective owners. © 2024 NXP B.V. NXP Investment Thesis Market leader with strong revenue growth Proven financial model with resilient profitability Reliable capital return policy of robust free cash flow 2 | NXP | Public Forward Looking Statements This document includes forward-looking statements which include statements regarding N ...

Core Insights - NXP Semiconductors N.V. shares declined significantly after the company provided a weaker-than-expected outlook for the current quarter, citing reduced spending from automotive customers and rising geopolitical risks [1][2] - The company projected third-quarter net sales between $3.15 billion and $3.35 billion, with the upper limit falling short of analyst expectations of $3.36 billion [2] - NXP's automotive segment sales fell 7% year-over-year to $1.73 billion, marking the largest quarterly revenue decline in over three years due to macroeconomic uncertainties [2] - Geopolitical tensions, particularly between Beijing and Washington, are increasing risks for NXP, as China accounted for approximately 33% of the company's total revenue last year [2] Stock Performance and Technical Analysis - NXP shares have been trading within a rising wedge pattern over the past year, indicating potential price reversal after an uptrend [3] - The stock was down 7.9% at $261.38 in premarket trading, suggesting a significant sell-off following the earnings report [3] - Investors should watch the $248 level for potential support, as it aligns with the lower trendline of the rising wedge pattern [4] - A resumption of the longer-term uptrend may occur if the relative strength index (RSI) indicates an oversold condition below 30 at the same time [4]

[Performance Summary](index=1&type=section&id=Performance%20Summary) NXP reported Q2 2024 revenue of $3.13 billion, consistent with guidance and down 5% year-over-year, indicating the company has navigated the cyclical trough and expects to resume sequential growth - CEO Kurt Sievers stated that NXP has successfully navigated the cyclical trough in its businesses and expects to resume sequential growth, while driving resilient profitability[1](index=1&type=chunk) Q2 2024 Key Financial Metrics | Metric | GAAP | Non-GAAP | | :--- | :--- | :--- | | Revenue | $3.13 billion (-5% YoY) | $3.13 billion (-5% YoY) | | Gross Margin | 57.3% | 58.6% | | Operating Margin | 28.7% | 34.3% | | Diluted EPS | $2.54 | $3.20 | Q2 2024 Cash Flow & Leverage | Metric | Value | | :--- | :--- | | Cash Flow from Operations | $761 million | | Non-GAAP Free Cash Flow | $577 million | | Gross Financial Leverage | 1.9x | | Net Financial Leverage | 1.3x | [End-Market Revenue Breakdown](index=2&type=section&id=End-Market%20Revenue%20Breakdown) The Automotive segment remains the largest revenue contributor at $1.73 billion, despite a 7% year-over-year decline, while Mobile demonstrated strong performance with a 21% YoY increase Revenue by End-Market (Q2 2024) | End-Market | Revenue (Millions USD) | QoQ Change (%) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Automotive | 1,728 | -4% | -7% | | Industrial & IoT | 616 | +7% | +7% | | Mobile | 345 | -1% | +21% | | Comm. Infra. & Other | 438 | +10% | -23% | - Channel inventory remained stable at **1.7 months**, a slight increase from **1.6 months** in the prior quarter and year-ago quarter[3](index=3&type=chunk) [Capital Return](index=1&type=section&id=Capital%20Return) In Q2 2024, NXP returned a total of $570 million to shareholders, accounting for 99% of its non-GAAP free cash flow through dividends and share repurchases Q2 2024 Capital Return Summary | Item | Amount (Millions USD) | | :--- | :--- | | Cash Dividends Paid | 260 | | Share Repurchases | 310 | | **Total Capital Return** | **570** | - The total capital return of **$570 million** represented **99%** of the second quarter's non-GAAP free cash flow[2](index=2&type=chunk) - On a trailing twelve-month basis, capital return to shareholders was **$2.4 billion**, or **81%** of non-GAAP free cash flow[2](index=2&type=chunk) [Business & Strategic Developments](index=1&type=section&id=Business%20%26%20Strategic%20Developments) NXP announced several key strategic initiatives, including a new 5nm processor for vehicle central compute, a collaboration for SiC-based EV traction inverters, and a joint venture for a new 300mm wafer manufacturing facility - Announced the 5nm S32N55 processor, the first in the S32N family of vehicle super-integration processors, to address automakers' central compute needs[2](index=2&type=chunk) - Collaborated with ZF Friedrichshafen AG to adopt NXP's GD316x high-voltage isolated gate drivers for next-generation SiC-based traction inverter solutions in electric vehicles[2](index=2&type=chunk) - Announced a plan to create a manufacturing joint-venture, VisionPower Semiconductor Manufacturing Company (VSMC), with Vanguard International Semiconductor Corp (VIS) to build a new 300mm semiconductor wafer fab in Singapore[2](index=2&type=chunk) [Third Quarter 2024 Outlook](index=3&type=section&id=Third%20Quarter%202024%20Outlook) For the third quarter of 2024, NXP anticipates revenue to be in the range of $3.15 billion to $3.35 billion, with a midpoint of $3.25 billion, indicating a sequential growth of 4% Q3 2024 Guidance (Midpoint) | Metric | Midpoint Guidance | | :--- | :--- | | Total Revenue | $3.25 billion (+4% QoQ) | | Non-GAAP Gross Margin | 58.5% | | Non-GAAP Operating Margin | 35.1% | | Non-GAAP Diluted EPS | $3.42 | - GAAP Gross Margin is expected to be **57.5%** at the midpoint, with adjustments for PPA effects, share-based compensation, and other incidentals[5](index=5&type=chunk)[6](index=6&type=chunk) - GAAP Operating Margin is projected to be **29.8%** at the midpoint, with expected adjustments for PPA effects, share-based compensation, and restructuring[5](index=5&type=chunk)[6](index=6&type=chunk) [Financial Statements](index=5&type=section&id=Financial%20Statements) The detailed financial statements provide a comprehensive view of NXP's financial position, including a GAAP net income of $658 million, total assets of $23.2 billion, and $761 million in cash from operations [Condensed Consolidated Statement of Operations](index=5&type=section&id=Table%201%3A%20Condensed%20consolidated%20statement%20of%20operations%20%28unaudited%29) This section presents the unaudited condensed consolidated statement of operations, detailing revenue, gross profit, operating income, net income, and diluted EPS for Q2 2024 and comparative periods Q2 2024 Income Statement Highlights | Item (Millions USD) | Q2 2024 | Q1 2024 | Q2 2023 | | :--- | :--- | :--- | :--- | | Revenue | 3,127 | 3,126 | 3,299 | | Gross Profit | 1,792 | 1,783 | 1,881 | | Operating Income | 896 | 856 | 937 | | Net Income Attributable to Stockholders | 658 | 639 | 698 | | Diluted EPS (USD) | 2.54 | 2.47 | 2.67 | [Condensed Consolidated Balance Sheet](index=6&type=section&id=Table%202%3A%20Condensed%20consolidated%20balance%20sheet%20%28unaudited%29) This section provides the unaudited condensed consolidated balance sheet, outlining assets, liabilities, and equity as of June 30, 2024, and March 31, 2024 Balance Sheet Highlights (As of June 30, 2024) | Item (Millions USD) | June 30, 2024 | March 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | 2,859 | 2,908 | | Total current assets | 6,880 | 6,894 | | Total assets | 23,196 | 23,320 | | Long-term debt | 9,681 | 10,178 | | Total stockholders' equity | 9,018 | 8,829 | | Total liabilities and equity | 23,196 | 23,320 | [Condensed Consolidated Statement of Cash Flows](index=7&type=section&id=Table%203%3A%20Condensed%20consolidated%20statement%20of%20cash%20flows%20%28unaudited%29) This section details the unaudited condensed consolidated statement of cash flows, presenting cash generated from operating, investing, and financing activities for Q2 2024 and prior periods Q2 2024 Cash Flow Highlights | Item (Millions USD) | Q2 2024 | Q1 2024 | Q2 2023 | | :--- | :--- | :--- | :--- | | Net cash from operating activities | 761 | 851 | 756 | | Net cash used for investing activities | (239) | (274) | (255) | | Net cash used for financing activities | (567) | (1,528) | (565) | | (Decrease) in cash and cash equivalents | (49) | (954) | (67) | [GAAP to Non-GAAP Reconciliation](index=8&type=section&id=GAAP%20to%20Non-GAAP%20Reconciliation) NXP provides non-GAAP figures to offer a clearer view of its core operating performance, with key reconciling items for Q2 2024 including share-based compensation and PPA effects Q2 2024 GAAP to Non-GAAP Operating Income Reconciliation (Millions USD) | Description | Amount | | :--- | :--- | | **GAAP Operating income** | **896** | | PPA effects | (41) | | Restructuring | (6) | | Share-based compensation | (114) | | Other incidentals | (14) | | **Non-GAAP Operating income** | **1,071** | Q2 2024 GAAP to Non-GAAP Diluted EPS Reconciliation (USD) | Description | Amount | | :--- | :--- | | **GAAP diluted EPS** | **2.54** | | PPA Effects | (0.16) | | Restructuring | (0.02) | | Share-based compensation | (0.44) | | Other incidentals & adjustments | (0.10) | | Income tax effect | 0.06 | | **Non-GAAP diluted EPS** | **3.20** | Adjusted EBITDA and Free Cash Flow (Q2 2024) | Metric (Millions USD) | Amount | | :--- | :--- | | Adjusted EBITDA (Non-GAAP) | 1,243 | | Non-GAAP free cash flow | 577 |

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 June 30, 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) (State or other jurisdiction of incorpora ...

NXP Semiconductors (NXPI) reported $3.13 billion in revenue for the quarter ended June 2024, representing a year-over-year decline of 5.2%. EPS of $3.20 for the same period compares to $3.43 a year ago. The reported revenue compares to the Zacks Consensus Estimate of $3.13 billion, representing a surprise of +0.04%. The company has not delivered EPS surprise, with the consensus EPS estimate being $3.20. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Str ...

Core Viewpoint - NXP Semiconductors reported second-quarter 2024 financial results, achieving revenue of $3.13 billion, which aligns with guidance, indicating resilience in a challenging demand environment and expectations for sequential growth in the upcoming quarter [1][2]. Financial Performance - Revenue for Q2 2024 was $3.13 billion, a decrease of 5% year-on-year [2][3]. - GAAP gross margin was 57.3%, while non-GAAP gross margin was 58.6% [2][3]. - GAAP operating margin stood at 28.7%, with non-GAAP operating margin at 34.3% [2][3]. - GAAP diluted net income per share was $2.54, and non-GAAP diluted net income per share was $3.20 [4][5]. - Cash flow from operations was $761 million, with non-GAAP free cash flow of $577 million [2][3]. Capital Return and Investments - NXP executed a capital return policy, paying $260 million in cash dividends and repurchasing $310 million of common shares, totaling $570 million, which represents 99% of the non-GAAP free cash flow for the quarter [2][3]. - Over the trailing twelve months, capital return to shareholders amounted to $2.4 billion, or 81% of non-GAAP free cash flow [2]. Strategic Developments - NXP announced the launch of the 5nm S32N55 processor, aimed at automotive applications [2]. - A collaboration with ZF Friedrichshafen AG was established to develop next-generation SiC-based traction inverter solutions for electric vehicles [2]. - NXP and Vanguard International Semiconductor Corp. plan to create a joint venture for a new 300mm semiconductor wafer manufacturing facility in Singapore, targeting automotive and industrial markets [2]. Guidance for Q3 2024 - NXP provided guidance for Q3 2024, projecting total revenue between $3.15 billion and $3.35 billion, with expectations of a sequential increase of 1% to 7% [6]. - The guidance reflects a year-on-year decline of 2% to 8% [6].

NXP Semiconductors (NXPI) closed at $271.40 in the latest trading session, marking a +0.05% move from the prior day. The stock's performance was behind the S&P 500's daily gain of 0.25%. Meanwhile, the Dow experienced a rise of 0.15%, and the technology-dominated Nasdaq saw an increase of 0.03%.The the stock of chipmaker has fallen by 0.84% in the past month, lagging the Computer and Technology sector's gain of 8.7% and the S&P 500's gain of 3.34%.The investment community will be closely monitoring the perf ...

NXP Semiconductors N.V. (NASDAQ:NXPI) NASDAQ Investor Conference Conference Call June 11, 2024 4:00 AM ET Company Participants Kurt Sievers - President & CEO Bill Betz - CFO Conference Call Participants Blayne Curtis - Jefferies Blayne Curtis Go ahead and get started. And I'm Blayne Curtis, recently joined Jefferies, covering U.S. Semiconductor, Semi Cap Equipment. I've known NXP for a very long time. Very happy to have Kurt Sievers, the President and CEO; as well as Bill Betz, who's the CFO. Welcome both o ...