NXP Semiconductors Reports Second Quarter 2024 Results

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].