Why Is NXP (NXPI) Up 1.7% Since Last Earnings Report?

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$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$1.829 billion, down 3.3% year over year but above the consensus mark of $1.812 billion [4]. - Mobile revenues increased by 8$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$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$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].