Company Performance - NXP Semiconductors (NXPI) closed at $219.02, reflecting a +0.39% change from the previous day, outperforming the S&P 500's daily loss of 0.39% [1] - Over the past month, shares of NXP have decreased by 0.91%, underperforming the Computer and Technology sector's gain of 7.63% and the S&P 500's gain of 3.6% [1] Financial Expectations - The upcoming financial results for NXP are expected to show an EPS of $3.14, which is a 15.36% decline compared to the same quarter last year [2] - The Zacks Consensus Estimate for revenue is projected at $3.1 billion, down 9.43% from the previous year [2] - For the entire fiscal year, earnings are projected at $13.04 per share and revenue at $12.6 billion, indicating changes of -6.92% and -5.08% respectively from the prior year [3] Analyst Estimates and Rankings - Recent changes to analyst estimates for NXP Semiconductors are important as they reflect short-term business dynamics, with positive revisions indicating a favorable business outlook [3] - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), currently ranks NXP at 4 (Sell) [5] - Over the last 30 days, the Zacks Consensus EPS estimate has decreased by 0.33% [5] Valuation Metrics - NXP Semiconductors has a Forward P/E ratio of 16.74, which is lower than the industry's average Forward P/E of 36.88 [6] - The company's PEG ratio stands at 3.82, compared to the Semiconductor - Analog and Mixed industry's average PEG ratio of 3.15 [6] Industry Context - The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector and currently holds a Zacks Industry Rank of 69, placing it in the top 28% of over 250 industries [7] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [7]

Core Viewpoint - NXP Semiconductors has announced the acquisition of Aviva Links for $242.5 million to enhance its automotive networking and connectivity portfolio, particularly in the area of advanced driver-assistance systems (ADAS) and in-vehicle infotainment (IVI) applications [1][5]. Group 1: Acquisition Details - The acquisition of Aviva Links is valued at $242.5 million and is expected to close in the first half of 2025, pending regulatory approvals [1][5]. - Aviva Links specializes in Automotive SerDes Alliance (ASA) compliant in-vehicle connectivity solutions, which are crucial for the development of software-defined vehicles [1][3]. Group 2: Market Context - The market for ADAS and IVI asymmetrical links is projected to grow from $1 billion in 2024 to $2 billion by 2034, indicating significant growth potential in this sector [5]. - The current proprietary asymmetrical links limit automakers to non-standardized solutions, which the acquisition aims to address by shifting to open standard ASA SerDes connections [2][5]. Group 3: Technological Advancements - Aviva Links offers advanced ASA compliant solutions with data rates up to 16 Gbps, supporting both SerDes point-to-point and Ethernet-based connectivity [3][4]. - The Automotive SerDes Alliance (ASA) aims to facilitate the transition to open source, interoperable networking solutions, enhancing the capabilities of software-defined vehicles [4][6]. Group 4: Strategic Importance - NXP's acquisition is expected to strengthen its leadership in automotive networking solutions, providing OEMs with comprehensive networking solutions that include asymmetrical and symmetrical links [1][6]. - The ASA, with over 150 members including major automotive manufacturers, represents a collaborative effort to advance automotive technology and standards [6].

Company Performance - NXP Semiconductors (NXPI) closed at $219.84, reflecting a +0.87% change from the previous day, outperforming the S&P 500's gain of 0.82% [1] - Over the past month, shares of NXP have decreased by 3.05%, underperforming the Computer and Technology sector's gain of 1.43% and the S&P 500's gain of 0.8% [1] Earnings Expectations - The upcoming earnings release is anticipated, with expected EPS of $3.14, representing a 15.36% decline from the prior-year quarter [2] - Revenue is forecasted to be $3.1 billion, indicating a 9.43% decline compared to the same quarter last year [2] - For the full year, analysts expect earnings of $13.04 per share and revenue of $12.6 billion, marking changes of -6.92% and -5.08% respectively from the previous year [3] Analyst Estimates and Rankings - Recent changes in analyst estimates are crucial as they reflect near-term business trends, with positive revisions indicating confidence in the company's performance [4] - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), currently ranks NXP Semiconductors at 4 (Sell) [6] - The Zacks Consensus EPS estimate has decreased by 0.87% in the past month [6] Valuation Metrics - NXP Semiconductors has a Forward P/E ratio of 16.72, which is a discount compared to the industry average Forward P/E of 38.66 [7] - The company has a PEG ratio of 3.82, compared to the Semiconductor - Analog and Mixed industry's average PEG ratio of 3.14 [8] Industry Context - The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector, currently holding a Zacks Industry Rank of 142, placing it in the bottom 44% of over 250 industries [9] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [9]

Core Viewpoint - NXP Semiconductors reported mixed results in its Q3 2024 earnings, with earnings per share beating estimates but revenues missing expectations, indicating potential challenges ahead as estimates trend downward [2][3][11]. Financial Performance - Q3 2024 non-GAAP earnings were $3.45 per share, exceeding the Zacks Consensus Estimate by 0.58%, but down 7% year over year [2]. - Total revenues for Q3 were $3.250 billion, down 5.4% year over year, slightly missing the Zacks Consensus Estimate of $3.251 billion [3]. - Automotive revenues, which accounted for 56.3% of total revenues, were $1.829 billion, down 3.3% year over year but above the consensus mark of $1.812 billion [4]. - Mobile revenues increased by 8% year over year to $407 million, surpassing the consensus estimate of $396 million [4]. - Revenues from Communication Infrastructure & Others were $451 million, down 19.3% year over year, but exceeded the consensus mark of $417 million [5]. - Industrial & IoT revenues were $563 million, down 7.2% year over year, falling short of the consensus estimate of $627 million [5]. Profitability Metrics - Non-GAAP gross profit for Q3 was $1.892 billion, down 6% year over year, with a gross margin of 58.2%, contracting by 30 basis points [6]. - Non-GAAP operating income declined 4% year over year to $1.15 billion, while operating margin expanded by 50 basis points to 35.5% [6]. Balance Sheet and Cash Flow - As of September 30, 2024, cash and cash equivalents were $3.12 billion, down from $3.26 billion as of June 30, 2024 [7]. - Long-term debt remained stable at $9.683 billion [7]. - Cash flow from operations was $779 million, up 2.4% from the previous quarter, with free cash flow of $593 million [8]. Shareholder Returns - In Q3, the company paid dividends totaling $259 million and repurchased shares worth $305 million [9]. Q4 Guidance - For Q4 2024, NXP expects revenues between $3 billion and $3.2 billion, indicating a year-over-year decline of 6.9-14% [11]. - Adjusted earnings are projected to be between $2.93 and $3.33 per share, suggesting a decline of 11.4-26.6% year over year [11]. Market Sentiment - Estimates for the stock have trended downward, with a consensus estimate shift of -19.3% [12][13]. - NXP currently holds a Zacks Rank of 5 (Strong Sell), indicating expectations of below-average returns in the coming months [15].

SINGAPORE, Dec. 04, 2024 (GLOBE NEWSWIRE) -- VisionPower Semiconductor Manufacturing Company Pte Ltd (VSMC), the joint venture formed in September, 2024 by Vanguard International Semiconductor Corporation (VIS, TPEx 5347) and NXP Semiconductors N.V. (NXP, NASDAQ: NXPI) today celebrated breaking ground at the site of the joint venture's new 300mm wafer manufacturing facility in Tampines, Singapore. The groundbreaking ceremony was attended by customers, suppliers, partners, association representatives, reside ...

证 券 研 究 报 告 会议纪要 电子 2024 年 11 月 07 日 | --- | --- | --- | |-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- ...

NXP Semiconductors (NXPI) reported third-quarter 2024 non-GAAP earnings of $3.45 per share, beating the Zacks Consensus Estimate by 0.58%. The figure declined 7% year over year.NXPI’s earnings beat the Zacks Consensus Estimate thrice and matched once, with the average surprise being 1.79%.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.NXPI’s top line of $3.250 billion was in line with the midpoint of management’s guidance, down 5.4% year over year. The figure missed the Zacks Consens ...

Financial Data and Key Metrics - Q3 2024 revenue was $3.25 billion, down 5% YoY but up 4% sequentially, in line with guidance [5] - Non-GAAP operating margin was 35.5%, up 50 basis points YoY and 40 basis points above the midpoint of guidance [5] - Non-GAAP gross margin was 58.2%, down 30 basis points YoY and 30 basis points below the midpoint of guidance due to product mix [13] - Non-GAAP operating expenses were $738 million, down $65 million YoY, driven by lower variable compensation and payroll [13] - Non-GAAP EPS was $3.45, slightly ahead of the midpoint guidance of $3.42 [14] - Total debt at the end of Q3 was $10.18 billion, with a cash balance of $3.15 billion, resulting in net debt of $7.03 billion [15] - Trailing 12-month adjusted EBITDA was $5.24 billion, with a net debt to EBITDA ratio of 1.3x [15] Business Line Performance - Automotive revenue was $1.83 billion, down 3% YoY, in line with guidance, with weakness in Europe and North America but growth in China and Asia-Pacific [6] - Industrial & IoT revenue was $563 million, down 7% YoY, below guidance due to global weakness [7] - Mobile revenue was $407 million, up 8% YoY, at the high end of guidance, driven by seasonal strength [7] - Communication infrastructure and other revenue was $451 million, down 19% YoY, above the high end of guidance due to stronger-than-expected RFID program ramp [7] Market Performance - China led sequential growth in Q3, with strength in automotive and industrial IoT markets [5] - Europe and North America experienced weakness in automotive and industrial markets, with slowing OEM demand and inventory digestion [6][7] - Distribution inventory increased to 1.9 months from 1.7 months in Q2, with slower sell-through in Europe and America [7] Company Strategy and Industry Competition - The company is focusing on long-term growth in automotive and industrial IoT markets, despite short-term macro challenges [11] - The cyclical rebound anticipated for H2 2024 did not materialize, leading to a more conservative outlook for Q4 [10] - The company is managing inventory tightly, aiming to hold channel inventory flat at 1.9 months in Q4 [8] - The company is confident in its long-term strategy, with investments in high-growth markets and a focus on resilient profitability [11] Management Commentary on Operating Environment and Future Outlook - Management noted increasing macro-related weakness in industrial and IoT markets, with a contraction in manufacturing PMI below 50 across all regions except China [8] - The company expects Q4 revenue to be $3.1 billion, down 9% YoY and 5% sequentially, reflecting broader macro weakness in Europe and North America [9] - Management highlighted the impact of Tier 1 customers reducing inventory, leading to lower-than-expected order trends [10] - The company remains confident in its ability to navigate the uncertain demand environment and drive long-term profitability [11] Other Important Information - The company returned $564 million to shareholders through dividends and share repurchases in Q3, representing 95% of non-GAAP free cash flow [16] - The board authorized an additional $2 billion for share buybacks, with a total balance of $2.64 billion at the end of Q3 [16] - Days of inventory increased to 149 days, while the cash conversion cycle increased to 119 days [17] - Q4 guidance includes non-GAAP gross margin of 57.5%, operating expenses of $725 million, and EPS of $3.13 at the midpoint [18][19] Q&A Session Summary Question: Customer Behavior Changes and Inventory Management [22][23] - Management noted a broadening weakness in industrial and IoT markets, leading to more cautious inventory management by customers, particularly in Western automotive and industrial segments [23] - China remains strong, with growth in automotive and industrial IoT, but weakness in Europe and North America is impacting overall performance [23] Question: Gross Margin Trends and Utilization [24][25][26][27] - Gross margin in Q3 was impacted by product mix, with industrial IoT revenues being margin accretive and mobile revenues slightly dilutive [25] - Utilization is expected to remain in the low 70s through H1 2025, with potential tailwinds from mix and new product ramps in the future [27] Question: Channel Inventory and Internal Inventory Targets [31][32][33] - The company increased channel inventory to 1.9 months to ensure competitiveness, but slower sell-through led to higher-than-expected inventory levels [32] - Internal inventory is expected to remain elevated for the next few quarters, with proactive reductions in foundry purchases to manage inventory levels [33] Question: Revenue Bottom and Seasonality [34][35][36] - Management expects Q1 2025 to follow normal seasonality, with a high single-digit sequential decline from Q4 2024 [35] - The company is cautious about calling the trough due to macro uncertainty but believes it is well-positioned for recovery when it occurs [36] Question: China Exposure and Pricing Strategy [39][40][41][42][60] - China represents a significant portion of the company's revenue, with strong growth in automotive and industrial IoT markets [40] - Pricing is expected to be neutral for 2024, with low single-digit ASP erosion anticipated for 2025, in line with pre-COVID trends [60] Question: Industrial Slowdown and Geographic Weakness [46][47] - Weakness in industrial and IoT markets is predominantly in Europe and the U.S., with factory automation being particularly weak [47] - China's strength is more in consumer IoT, with seasonal strength expected in Q4 [47] Question: Auto Market Weakness and Inventory Levels [71][72] - Weakness in the auto market is due to both lower end demand and Tier 1 customers reducing inventory levels [72] - The company expects a stronger recovery once inventory levels normalize, but the timing remains uncertain [72] Question: EV and Hybrid Trends [73][74][75] - The company does not see a significant difference in content between hybrids and EVs, as its focus is on battery management systems [75] - XEV growth is expected to continue, with a global penetration target of 75% by 2030 [75] Question: Pricing and Cost Competitiveness [59][60][62][63] - The company is focused on maintaining pricing discipline and will exit product categories where competition is solely based on price [62] - Cost competitiveness is a key focus, with initiatives like the BSMC joint venture helping to improve the cost base [63] Question: Gross Margin Resilience and Long-Term Strategy [66][67] - Gross margin resilience is attributed to the company's ability to manage inventory and fixed costs effectively [67] - Long-term gross margin improvement is expected through strategic structural changes and new product ramps [67] Question: Auto Content and Software-Defined Vehicles [68][69] - The company remains confident in its auto content growth, particularly with the S32 platform and 5-nanometer vehicle computer [69] - Chinese OEMs are gaining competitiveness, which could lead to higher growth opportunities in China [69] Question: Industrial and IoT Geographic Mix [78][79] - Industrial and IoT revenue is predominantly in China, but weakness in Europe and the U.S. is impacting overall performance [79] - The company is maintaining channel discipline, which exposes it fully to end demand fluctuations [79] Question: China Auto Market and EV Growth [81] - China represents a significant portion of the company's auto revenue, with strong growth in EVs and faster innovation cycles [81] - The company views China's growing EV market as a positive for its business, given the faster adoption of new technologies [81] Question: Inventory Days and Long-Term Targets [82] - Inventory days are expected to remain elevated in the near term, with a focus on replenishing the channel when demand improves [82] - Long-term inventory targets will be updated during the upcoming Investor Day [82]

Revenue and Financial Performance - Revenue for Q3 2024 was $3.25 billion, down 5% year-on-year[2] - Q4 2024 revenue guidance is between $3.0 billion and $3.2 billion, reflecting a year-on-year decline of 6% to 12%[6] - Revenue for Q3 2024 was $3.25 billion, compared to $3.127 billion in Q2 2024 and $3.434 billion in Q3 2023[18] - NXP Semiconductors posted revenue of $13.28 billion in 2023[15] Gross Margin and Profitability - GAAP gross margin was 57.4%, and non-GAAP gross margin was 58.2%[3] - Gross profit for Q3 2024 was $1.866 billion, up from $1.792 billion in Q2 2024 but down from $1.965 billion in Q3 2023[18] - GAAP gross profit for the quarter ended September 29, 2024, was $1.866 billion, with a gross margin of 57.4%, compared to $1.792 billion and 57.3% in the previous quarter[23] - Non-GAAP gross profit for the quarter ended September 29, 2024, was $1.892 billion, with a gross margin of 58.2%, compared to $1.833 billion and 58.6% in the previous quarter[23] Operating Income and Margins - Non-GAAP operating margin for Q4 2024 is expected to be between 33.1% and 35.0%[6] - GAAP operating income for the quarter ended September 29, 2024, was $990 million, with an operating margin of 30.5%, compared to $896 million and 28.7% in the previous quarter[23] - Non-GAAP operating income for the quarter ended September 29, 2024, was $1.153 billion, with an operating margin of 35.5%, compared to $1.071 billion and 34.3% in the previous quarter[23] Net Income and Earnings Per Share - Net income attributable to stockholders for Q3 2024 was $718 million, compared to $658 million in Q2 2024 and $787 million in Q3 2023[18] - Diluted earnings per share for Q3 2024 was $2.79, up from $2.54 in Q2 2024 but down from $3.01 in Q3 2023[18] - Net income for the quarter ended September 29, 2024, was $729 million, compared to $664 million in the previous quarter and $792 million in the same period last year[22] - GAAP net income per diluted share for the quarter ended September 29, 2024, was $2.79, compared to $2.54 in the previous quarter and $3.01 in the same period last year[25] - Non-GAAP net income per diluted share for the quarter ended September 29, 2024, was $3.45, compared to $3.20 in the previous quarter and $3.70 in the same period last year[25] Cash Flow and Capital Expenditures - Cash flow from operations was $779 million, with non-GAAP free cash flow of $593 million[3] - Operating cash flow for the quarter ended September 29, 2024, was $779 million, slightly higher than $761 million in the previous quarter but lower than $988 million in the same period last year[22] - Capital expenditures for the quarter ended September 29, 2024, were $186 million, slightly lower than $185 million in the previous quarter and $200 million in the same period last year[22] - Net cash provided by operating activities for September 29, 2024 was $779 million[30] - Non-GAAP free cash flow for September 29, 2024 was $593 million, compared to $577 million for the three months ended June 30, 2024[30] - Trailing twelve month non-GAAP free cash flow as of September 29, 2024 was $2,759 million, representing 21% of Revenue[30] Shareholder Returns and Share Repurchases - Capital return to shareholders in Q3 2024 was $564 million, representing 95% of non-GAAP free cash flow[3] - NXP authorized an additional $2.0 billion for share repurchases, resulting in a $2.64 billion share repurchase balance at the end of Q3 2024[3] Balance Sheet and Financial Position - Total assets as of September 2024 were $23.669 billion, compared to $23.196 billion in June 2024 and $23.996 billion in October 2023[20] - Cash and cash equivalents as of September 2024 were $2.748 billion, down from $2.859 billion in June 2024 and $4.042 billion in October 2023[20] - Long-term debt as of September 2024 was $9.683 billion, slightly up from $9.681 billion in June 2024 but down from $10.173 billion in October 2023[20] - Cash and cash equivalents at the end of the quarter ended September 29, 2024, were $2.748 billion, compared to $2.859 billion in the previous quarter and $4.042 billion in the same period last year[22] Research and Development Expenses - Research and development expenses for Q3 2024 were $577 million, down from $594 million in Q2 2024 and $601 million in Q3 2023[18] Operating Expenses - Total operating expenses for Q3 2024 were $871 million, down from $892 million in Q2 2024 and $966 million in Q3 2023[18] Product Launches and Innovations - NXP launched the Trimension® SR250, the industry's first single-chip UWB solution for Industrial and IoT applications[3] - NXP announced the MC33777, the world's first electric vehicle battery junction box IC[3] - NXP introduced the new i.MX RT700 crossover MCU family for AI-enabled edge devices[3] Other Income and Expenses - GAAP Other income (expense) for September 2024 was $(4) million, while Non-GAAP Other income (expense) was $(1) million[27] - GAAP Results relating to equity-accounted investees for September 29, 2024 was $(6) million, with Non-GAAP Results at $0 million[28] Adjusted EBITDA - Adjusted EBITDA (Non-GAAP) for September 29, 2024 was $1,329 million, compared to $1,243 million for the three months ended June 30, 2024[29] - Trailing twelve month adjusted EBITDA (Non-GAAP) was $5,235 million as of September 29, 2024[29]

NXP Investor Presentation Third Quarter 2024 November 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 regardin ...