NXP Semiconductors (NXPI) Q1 Earnings Beat, Revenues Rise Y/Y

Core Viewpoint - NXP Semiconductors N.V. reported first-quarter 2024 non-GAAP earnings of $3.24 per share, exceeding expectations, while revenues of $3.13 billion slightly missed estimates, indicating mixed performance across different market segments [1][2]. Financial Performance - Non-GAAP earnings per share were $3.24, surpassing the Zacks Consensus Estimate by 1.9% and reflecting a year-over-year increase of 1.6% [1] - Revenues totaled $3.13 billion, missing the Zacks Consensus Estimate by 0.02% and showing a slight year-over-year increase of 0.2% [1] - The non-GAAP gross margin was reported at 58.2%, remaining flat year over year [3] - Non-GAAP operating margin was 34.5%, a decrease of 30 basis points from the previous year [3] Revenue Breakdown by End Market - Automotive revenues were $1.804 billion, accounting for 58% of total revenues, with a year-over-year decrease of 1% [2] - Industrial & IoT revenues reached $574 million, representing 18% of total revenues, up 14% year over year [2] - Mobile revenues were $349 million, making up 11% of total revenues, with a significant year-over-year increase of 34% [2] - Communication Infrastructure & Others generated $399 million, 13% of total revenues, down 25% year over year [2] Cash Flow and Balance Sheet - As of March 31, 2024, cash and cash equivalents totaled $3.3 billion, down from $4.27 billion at the end of the previous quarter [4] - Long-term debt was $10.178 billion, slightly up from $10.175 billion in the prior quarter [4] - Cash flow generated in the first quarter was $851 million, down from $1.14 billion in the previous quarter [4] - Free cash flow for the quarter was $627 million, with capital expenditures of $224 million [4] Guidance - For Q2 2024, NXP expects revenues between $3.025 billion and $3.225 billion, indicating a potential year-over-year decline of 5% at the midpoint [5] - The company anticipates non-GAAP gross margin between 58% and 59% and non-GAAP operating margin between 33.1% and 35% [5] - Non-GAAP earnings are projected to be between $3.00 and $3.41 per share, with the consensus estimate at $3.15 [5]