NXP Semiconductors reports Q2 earnings in line with estimates, but revenues fall YoY

From Nasdaq: 2024-07-23 11:52:00

NXP Semiconductors N.V. (NXPI) reported Q2 2024 non-GAAP earnings at $3.20 per share, in line with estimates. Revenues of $3.13 billion exceeded expectations, showing a 5% decline YoY. Automotive and Communication Infrastructure markets struggled, while Industrial & IoT, and Mobile markets performed well. NXPI stock has risen 24.5% YTD, outperforming industry growth.

In more detail, Automotive revenues were $1.728 billion, up 55.3% of total, down 7% YoY, exceeding estimates. Industrial & IoT saw $616 million in revenues, up 19.7% of the total, showing a 7% growth. Mobile revenues totaled $345 million, up 11% of total, showing a 21% increase. Communication Infrastructure revenues were $438 million, down 14% of total, down 23% YoY.

Non-GAAP gross margin for Q2 was 58.6%, up 20 basis points from last year. R&D expenses were $594 million, up 0.8% YoY. SG&A expenses decreased 1.5% YoY. Operating margin was 34.3%, down 70 bps from last year. Cash balance was $3.26 billion, long-term debt was $9.681 billion.

For Q3 2024, NXPI expects revenues of $3.150-$3.350 billion, a 5% YoY decline. Non-GAAP gross margin 58%-59%, operating margin 34.2%-36%. Earnings projected at $3.21-$3.63 per share. The Zacks Consensus Estimate is $3.59 per share.

Zacks ranks NXPI as a Hold. Better-ranked tech stocks include Arista Networks (ANET), Badger Meter (BMI), and Apple (AAPL). ANET is a Strong Buy, while BMI and AAPL are Buys. ANET shares have grown 45.3% YTD, with an earnings growth rate of 16.07%. BMI shares rose 30.9% YTD, with an earnings growth rate of 16.73%. AAPL shares grew 16.6% YTD, with an earnings growth rate of 12.48%. Download Earnings Season Profit Secrets for free.



Read more at Nasdaq: NXP Semiconductors (NXPI) Q2 Earnings Meet, Revenues Fall Y/Y