Take a look at shares of chipmaker AnnexPI under pressure this morning. This on the back of results. Christina Parson Nevis has a look at the numbers and the read through of course for the rest of uh the companies it competes with as well.Christina. Yeah. Yeah.You mentioned NXP that the stock is around falling roughly 2% despite you had a beat on earnings revenue guidance. Management struck a more optimistic tone on the earnings call, which was this morning about the cycle, saying they're seeing stronger si ...

Key Takeaways Q2 EPS hit $2.72, topping estimates by 2%, but declined 15% year over year on margin pressure. Revenues came in at $2.93B, up 0.9% over consensus, though down 6% year over year amid IoT and comms weakness. Q3 guidance forecasts $3.05-$3.25B revenues and $2.89-$3.30 EPS, both projecting Y/Y declines.NXP Semiconductors (NXPI) reported second-quarter 2025 non-GAAP earnings of $2.72 per share, beating the Zacks Consensus Estimate by 2.26%. The figure declined 15% year over year.NXP Semiconductor ...

Group 1 - The core viewpoint of the article indicates a collective decline in U.S. semiconductor stocks, with notable drops in major companies [1] Group 2 - AMD and Micron Technology experienced declines of over 3% [1] - Broadcom, NVIDIA, TSMC, NXP, and Marvell Technology saw declines exceeding 2% [1]

Financial Data and Key Metrics Changes - NXP reported Q2 revenue of $2,930 million, a decrease of 6% year on year, but $26 million better than the midpoint of guidance [7][15] - Non-GAAP operating margin for Q2 was 32%, down 230 basis points year on year, but 20 basis points above the midpoint of guidance [7][16] - Non-GAAP earnings per share for Q2 was $2.72, which was $0.06 better than the midpoint of guidance [15] - Total debt at the end of Q2 was $11,480 million, down $247 million sequentially [18] - Cash flow from operations was $779 million, resulting in non-GAAP free cash flow of $696 million or 24% of revenue [19] Business Line Data and Key Metrics Changes - Automotive revenue is expected to be flat year on year in Q3 but up in the mid-single digit range sequentially [10] - Industrial and IoT revenue is expected to be up in the mid-single digit range year on year and high single digits sequentially [10] - Mobile revenue is expected to be up in the low single digit range year on year and mid-20% range sequentially [10] - Communication infrastructure and other is expected to be down in the upper 20% range year on year and flat sequentially [10] Market Data and Key Metrics Changes - Distribution inventory was consistent with guidance of nine weeks, below the long-term target of eleven weeks [8][15] - The automotive market is showing signs of recovery, with Tier one customers approaching normalized inventory levels [9][10] Company Strategy and Development Direction - NXP is focusing on managing profitability and earnings while strengthening its competitive portfolio through recent acquisitions [13][23] - The company is consolidating its legacy front-end factories as part of a hybrid manufacturing strategy [23] - NXP aims to align its manufacturing footprint with market demands and is preparing for future customer requirements [23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in an emerging cyclical recovery based on several positive signals, including growing customer backlog and increased order signals [12][24] - The tariff environment remains uncertain, but its direct impact on NXP's financials is currently immaterial [12][24] - Management highlighted the importance of shipping to natural end demand as inventory burn at Tier one customers moderates [39][64] Other Important Information - NXP expects to resume share buybacks in Q3 after pausing due to capital requirements related to acquisitions [18] - The company anticipates Q3 revenue to be $3,150 million, down about 3% year on year and up 8% sequentially [20] Q&A Session Summary Question: How does the cyclical confidence compare quarter over quarter? - Management noted that confidence has improved, with signals indicating a strengthening up cycle compared to the previous quarter [28] Question: What is the impact of running fabs at higher utilization on gross margins? - Management indicated that the impact on gross margin from running fabs hot is minimal, and they have mechanisms to manage operating expenses related to acquisitions [30] Question: How does NXP's automotive recovery compare to peers? - Management stated that while automotive sales are flat year on year, they expect significant sequential growth, particularly as inventory burn moderates [36][39] Question: What are the signs for increasing channel inventory? - Management is monitoring several trends, including order backlogs and supplier escalations, to determine if inventory levels should be increased [54] Question: What is the contribution from recent acquisitions? - The recent acquisition of T2Tech Automotive is expected to have an immaterial impact on revenue and gross margin in the near term, but it will contribute to NXP's software-defined vehicle capabilities [42] Question: What are the visibility trends for the rest of the year? - Management expressed optimism about automotive growth driven by software-defined vehicles and noted that inventory burn is moderating, allowing for growth without macroeconomic improvements [72][76]

Financial Data and Key Metrics Changes - The company reported Q2 revenue of $2,930 million, a decrease of 6% year on year, but $26 million better than the midpoint of guidance [7][16] - Non-GAAP operating margin for Q2 was 32%, down 230 basis points year on year, but 20 basis points above the midpoint of guidance [7][16] - Non-GAAP earnings per share for Q2 was $2.72, which was $0.06 better than the midpoint of guidance [16] - Total debt at the end of Q2 was $11,480 million, down $247 million sequentially [18] - The company exited Q2 with a trailing twelve-month adjusted EBITDA of $4,750 million, resulting in a net debt to trailing twelve-month adjusted EBITDA ratio of 1.8 times [20] Business Line Data and Key Metrics Changes - Automotive revenue is expected to be flat year on year in Q3 but up in the mid-single-digit percent range versus Q2 [9] - Industrial and IoT revenue is expected to be up in the mid-single-digit range year on year and high single-digit range sequentially [9] - Mobile revenue is expected to be up in the low single-digit percent range year on year and mid-20% range sequentially [9] - Communication infrastructure and other is expected to be down in the upper 20% range year on year and flat versus Q2 [10] Market Data and Key Metrics Changes - The company noted that distribution inventory was consistent with guidance of nine weeks, below the long-term target of eleven weeks [7][16] - The automotive market is showing signs of recovery, with inventory burn at Tier 1 customers moderating [66] Company Strategy and Development Direction - The company is focusing on strengthening its competitive portfolio through recent acquisitions and aligning its manufacturing strategy [13][25] - The company is managing its operations to drive solid profitability and earnings, with a focus on leveraging acquisitions and improving operational efficiency [25] Management's Comments on Operating Environment and Future Outlook - Management expressed an increasingly positive view that a new upcycle is beginning to materialize, supported by growing customer backlog and improved order signals [12] - The tariff environment continues to create uncertainty, but the direct impact on financials is currently immaterial [12][92] - Management highlighted the importance of software-defined vehicles and the competitive advantages they provide to OEMs [95] Other Important Information - The company expects to resume share buybacks in Q3 after pausing due to capital requirements related to acquisitions [20] - The cash conversion cycle improved to 131 days, with cash flow from operations at $779 million [21] Q&A Session Summary Question: Comparison of cyclical confidence quarter over quarter - Management indicated that cyclical confidence has improved compared to the previous quarter, with stronger signals of a new upcycle [30] Question: Impact of running fabs hot on gross margin - Management stated that running fabs hot had little impact on gross margin, and they have mechanisms to manage operating expenses related to acquisitions [31][32] Question: Recovery pace in automotive segment compared to peers - Management noted that while automotive sales are flat year on year, they expect significant sequential growth, particularly as inventory burn moderates [39][40] Question: Contribution from acquisitions - Management confirmed that the recently closed acquisition of T2Tech Automotive has an immaterial impact on financials but is expected to enhance capabilities in software-defined vehicles [43][45] Question: Visibility trends through the end of the year - Management expressed optimism about growth drivers in automotive and industrial segments, with expectations to meet long-term growth targets [76][78]

Market Movements - US stock index futures showed mixed results with Dow futures down 0.10%, S&P 500 futures up 0.04%, and Nasdaq futures down 0.05% [1] - European indices also declined, with Germany's DAX down 0.94%, UK's FTSE 100 unchanged, France's CAC40 down 0.67%, and Europe's Stoxx 50 down 0.74% [2][3] - WTI crude oil fell by 0.99% to $65.30 per barrel, while Brent crude oil decreased by 0.95% to $68.55 per barrel [3][4] Market News - Federal Reserve Chair Jerome Powell is under political pressure ahead of his speech at a regulatory meeting, which will focus on Basel III, stress tests, and capital requirements for large banks [4] - Jefferies raised its S&P 500 year-end target to 5600 points, emphasizing the need to monitor core CPI and favoring defensive sectors amid high valuations [5] - Morgan Stanley warned of a historical peak in the demand for high-beta stocks, indicating increased short-term market risks due to a lack of fundamental support [6] - Wells Fargo remains bullish on the S&P 500, predicting double-digit growth driven by major tech companies, despite concerns over high valuations [7][8] Company-Specific News - General Motors reported a 35% decline in Q2 net profit, impacted by $1.1 billion in tariffs, with revenue of $47.1 billion, slightly below expectations [10] - Coca-Cola's Q2 revenue grew by 1% to $12.54 billion, with earnings per share of $0.87, exceeding analyst expectations [11] - NXP Semiconductors' Q3 outlook fell short of expectations, projecting revenue between $3.05 billion and $3.25 billion, reflecting ongoing industry challenges [12] - JPMorgan Chase is exploring the possibility of issuing loans backed by clients' cryptocurrency holdings, indicating a shift in stance towards crypto assets [13] Economic Data and Events - Powell's speech at a regulatory meeting is scheduled for 20:30 Beijing time, with additional discussions on large bank capital frameworks to follow [14]

Financial Performance & Growth - NXP targets high single-digit organic revenue growth and gross margin expansion above 60%[10, 123] - NXP aims to double non-GAAP EPS by 2030+[11, 124] - NXP's revenue grew at a 7% compound annual growth rate (CAGR) over the past five years, reaching $12.6 billion in 2024[60] - Non-GAAP operating profit increased at an 11% CAGR over five years, reaching $4.4 billion in 2024[61] - NXP's non-GAAP free cash flow was $2.1 billion in 2024[66] Market & Strategy - NXP is focused on RMS (Relative Market Share) leadership and system leadership to drive profitable growth[24, 25] - Automotive and Industrial & IoT are key growth drivers at the intelligent edge, within a $1.3 trillion semiconductor market opportunity[16, 17] - NXP projects revenue in Automotive to grow from $7.2 billion in 2024 to approximately $9.5 billion by 2027[42] - NXP anticipates revenue in Industrial & IoT to increase from $2.3 billion in 2024 to around $3.1 billion by 2027[49] Capital Allocation & Debt - NXP is committed to returning 100% of excess free cash flow to owners[10, 123] - NXP's cumulative capital return from 2018 to 2024 was $19.2 billion, representing 109% of non-GAAP free cash flow[90] - NXP's net debt stood at $8.308 billion with a net leverage of 1.8x as of Q2 2025[93]

[NXP Semiconductors Reports Second Quarter 2025 Results](index=1&type=section&id=NXP%20Semiconductors%20Reports%20Second%20Quarter%202025%20Results) [Second Quarter 2025 Financial & Strategic Highlights](index=1&type=section&id=Key%20Highlights%20for%20the%20Second%20Quarter%202025) NXP reported Q2 2025 revenue of $2.93 billion, a 6% YoY decrease, achieving a 32.0% non-GAAP operating margin and progressing strategic initiatives in autonomous driving and software-defined vehicles Q2 2025 Key Financial Metrics | Metric | Value | Change (YoY) | | :--- | :--- | :--- | | Revenue | $2.93 billion | -6% | | GAAP Gross Margin | 53.4% | | | Non-GAAP Gross Margin | 56.5% | | | GAAP Operating Margin | 23.5% | | | Non-GAAP Operating Margin | 32.0% | | | GAAP Diluted EPS | $1.75 | | | Non-GAAP Diluted EPS | $2.72 | | | Cash Flow from Operations | $779 million | | | Non-GAAP Free Cash Flow | $696 million | - Capital return to shareholders in Q2 2025 totaled **$461 million**, comprising **$204 million** in share buybacks and **$257 million** in dividends. This represents **66%** of the quarter's non-GAAP free cash flow[2](index=2&type=chunk) - Strategic initiatives in the quarter included[2](index=2&type=chunk) - **Autonomous Driving**: Announced third-generation S32R47 imaging radar processors for Level 2+ to Level 4 autonomous driving - **Software-Defined Vehicle (SDV)**: Partnered with Rimac Technology to co-develop an SDV architecture using NXP's S32E2 processors - **Acquisition**: Completed the acquisition of TTTech Auto, a leader in safety-critical systems for SDVs [Second Quarter 2025 Performance Analysis](index=2&type=section&id=Summary%20of%20Reported%20Second%20Quarter%202025) Total revenue for Q2 2025 was $2.926 billion, up 3% sequentially but down 6% year-over-year, with the Automotive segment flat and other segments experiencing declines, resulting in a 32.0% non-GAAP operating margin Q2 2025 Financial Performance vs. Prior Periods ($ millions) | Metric | Q2 2025 | Q1 2025 | Q2 2024 | Q-Q Change | Y-Y Change | | :--- | :--- | :--- | :--- | :--- | :--- | | **Total Revenue** | **$2,926** | **$2,835** | **$3,127** | **3%** | **-6%** | | GAAP Gross Profit | $1,562 | $1,560 | $1,792 | —% | -13% | | Non-GAAP Gross Profit | $1,652 | $1,591 | $1,833 | 4% | -10% | | GAAP Operating Income | $687 | $723 | $896 | -5% | -23% | | Non-GAAP Operating Income | $935 | $904 | $1,071 | 3% | -13% | | GAAP Net Income | $445 | $490 | $658 | -9% | -32% | | Non-GAAP Net Income | $690 | $673 | $829 | 3% | -17% | Q2 2025 Revenue by End-Market ($ millions) | End-Market | Q2 2025 | Q1 2025 | Q2 2024 | Q-Q Change | Y-Y Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Automotive | $1,729 | $1,674 | $1,728 | 3% | —% | | Industrial & IoT | $546 | $508 | $616 | 7% | -11% | | Mobile | $331 | $338 | $345 | -2% | -4% | | Comm. Infra. & Other | $320 | $315 | $438 | 2% | -27% | - Channel inventory remained stable quarter-over-quarter at **9 weeks**, but this is higher than the **7 weeks** reported in the same period last year[4](index=4&type=chunk) [Third Quarter 2025 Guidance](index=3&type=section&id=Guidance%20for%20the%20Third%20Quarter%202025) [Q3 2025 Outlook](index=3&type=section&id=Guidance%20for%20the%20Third%20Quarter%202025) NXP projects Q3 2025 revenue between $3.05 billion and $3.25 billion, reflecting an 8% sequential growth and a 3% year-over-year decline at the midpoint, with an anticipated non-GAAP operating margin of 33.7% Q3 2025 Guidance (Midpoint) | Metric | GAAP (Midpoint) | Non-GAAP (Midpoint) | | :--- | :--- | :--- | | Total Revenue | $3,150 M | $3,150 M | | Revenue Growth (QoQ) | 8% | 8% | | Revenue Growth (YoY) | -3% | -3% | | Gross Margin | 56.0% | 57.0% | | Operating Margin | 28.0% | 33.7% | | Diluted EPS | $2.42 | $3.10 | - The guidance for Q3 2025 reflects a combination of emerging cyclical improvement in core end markets and the performance of company-specific growth drivers[1](index=1&type=chunk) - Key expected adjustments from GAAP to non-GAAP in Q3 2025 include[11](index=11&type=chunk) - PPA effects: **$(40) million** impact on Operating Income - Share-based Compensation: **$(116) million** impact on Operating Income - Restructuring and Other Incidentals: **$(24) million** impact on Operating Income [Consolidated Financial Statements (Unaudited)](index=5&type=section&id=Consolidated%20Financial%20Statements) [Condensed Consolidated Statement of Operations](index=5&type=section&id=Table%201%3A%20Condensed%20consolidated%20statement%20of%20operations%20%28unaudited%29) NXP reported Q2 2025 revenue of $2.926 billion, resulting in $687 million operating income and $445 million net income attributable to stockholders, or $1.75 per diluted share Q2 2025 Statement of Operations Highlights ($ millions) | Line Item | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | Revenue | 2,926 | 2,835 | 3,127 | | Gross Profit | 1,562 | 1,560 | 1,792 | | Operating Income | 687 | 723 | 896 | | Net Income Attributable to Stockholders | 445 | 490 | 658 | | Diluted EPS ($) | 1.75 | 1.92 | 2.54 | [Condensed Consolidated Balance Sheet](index=6&type=section&id=Table%202%3A%20Condensed%20consolidated%20balance%20sheet%20%28unaudited%29) As of June 29, 2025, NXP's total assets were $25.25 billion, with cash and equivalents at $3.17 billion, total liabilities at $15.31 billion, and stockholders' equity at $9.57 billion Balance Sheet Highlights as of June 29, 2025 ($ millions) | Account | June 29, 2025 | March 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | :--- | | Cash and cash equivalents | 3,170 | 3,988 | 2,859 | | Total current assets | 7,686 | 8,025 | 6,880 | | Total assets | 25,250 | 25,180 | 23,196 | | Long-term debt | 9,479 | 10,226 | 9,681 | | Total liabilities | 15,314 | 15,503 | 13,851 | | Total stockholders' equity | 9,569 | 9,322 | 9,018 | [Condensed Consolidated Statement of Cash Flows](index=7&type=section&id=Table%203%3A%20Condensed%20consolidated%20statement%20of%20cash%20flows%20%28unaudited%29) In Q2 2025, NXP generated $779 million in operating cash flow, while investing activities used $892 million and financing activities used $709 million, resulting in an $818 million decrease in cash Q2 2025 Cash Flow Summary ($ millions) | Cash Flow Activity | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | Net cash from operating activities | 779 | 565 | 761 | | Net cash from investing activities | (892) | (216) | (239) | | Net cash from financing activities | (709) | 345 | (567) | | **Increase (decrease) in cash** | **(818)** | **696** | **(49)** | [Reconciliation of GAAP to Non-GAAP Results](index=8&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Results) [Key Metrics Reconciliation](index=8&type=section&id=Table%204%3A%20Financial%20Reconciliation%20of%20GAAP%20to%20non-GAAP%20Results%20%28unaudited%29) For Q2 2025, non-GAAP gross profit was $1.652 billion (56.5% margin) and non-GAAP operating income was $935 million (32.0% margin), with non-GAAP diluted EPS at $2.72, reflecting adjustments from GAAP figures Q2 2025 GAAP to Non-GAAP Reconciliation ($ millions) | Metric | GAAP | Adjustments | Non-GAAP | | :--- | :--- | :--- | :--- | | Gross Profit | $1,562 | $90 | $1,652 | | Operating Income | $687 | $248 | $935 | | Net Income Attributable to Stockholders | $445 | $245 | $690 | Q2 2025 GAAP to Non-GAAP Diluted EPS Reconciliation ($) | Metric | GAAP | Adjustments | Non-GAAP | | :--- | :--- | :--- | :--- | | Diluted EPS | $1.75 | $0.97 | $2.72 | [Adjusted EBITDA and Free Cash Flow](index=10&type=section&id=Table%208%3A%20Adjusted%20EBITDA%20and%20Free%20Cash%20Flow%20%28unaudited%29) NXP reported Q2 2025 Adjusted EBITDA of $1.103 billion and strong non-GAAP free cash flow of $696 million, derived from $779 million in cash from operations Adjusted EBITDA Calculation for Q2 2025 ($ millions) | Metric | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | GAAP Net income | 457 | 497 | 664 | | EBITDA (Non-GAAP) | 866 | 928 | 1,106 | | **Adjusted EBITDA (Non-GAAP)** | **1,103** | **1,073** | **1,243** | Free Cash Flow Calculation for Q2 2025 ($ millions) | Metric | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | Net cash from operating activities | 779 | 565 | 761 | | Net capital expenditures | (83) | (138) | (184) | | **Non-GAAP free cash flow** | **696** | **427** | **577** |

星展银行邓志坚：美股标普第二季预期盈利同比增长10%，低于一季度的平均13%。不过，增长预期最 多的依然是科技、通讯和医疗。但由于美国投资者过度押注特朗普会撤销部分关税，形成大量TACO交 易，市场博弈风险增加，随时有可能出现大量获利了结。所以市场对财报要求特别高，如果不是有明显 的长期增长预期，或者选择获利了结更为稳妥。 东北证券首席投资顾问郭峰：美股高估值阶段下，市场对盈利的要求更为严格；A股处于低估值区间， 对业绩的容忍度相对较高。 ① 美股财报季陷困局 业绩良好已不足以支撑股价 高估值成"紧箍咒" 美股财报季正如火如荼进行中，但市场走势显示，企业"表现良好"已不足以支撑股价。摩根大通和美国 银行等大型银行虽公布稳健业绩，但股价涨幅有限。奈飞虽营收和利润超预期并上调全年业绩指引，但 股价却下跌5%。分析师指出，当前市场估值高企，强劲业绩难以证明股价合理性。投资者对失误容忍 度极低，市场波动风险加剧。此外，特朗普关税政策的不确定性仍影响市场。尽管白宫曾软化立场，但 潜在风险未消。Siebert Financial首席投资官马克·马利克表示，关税敏感行业表现仍不确定，市场需警 惕未来风险。 ② 美国六大银行 ...

Group 1 - NXP Semiconductors' Q3 revenue outlook of $3.05 billion to $3.25 billion did not meet some investors' optimistic expectations, leading to a more than 5% drop in after-hours trading [1] - The company's revenue forecast reflects ongoing challenges in the industry, particularly due to the impact of tariffs from the Trump administration, which have disrupted global supply chains and created uncertainties in customer orders [1][2] - Despite the disappointing guidance, NXP's adjusted earnings per share forecast of $2.89 to $3.30 exceeds analysts' average prediction of $3.06, indicating a potential positive outlook for core markets [2] Group 2 - The automotive and industrial sectors are experiencing weakened demand, affecting NXP and its competitors like Infineon Technologies and STMicroelectronics [2] - Analysts warn that automotive chip manufacturers may face increased pricing pressure as Renault has lowered its outlook, and European customers' restocking demand to avoid tariffs is expected to end soon [3] - The oversupply of electric vehicle chips, particularly due to weak demand outside of China, has been suppressing industry sales for 18 months [2][3]