On November 7, 2023, NXP Semiconductors NV (NXPI, Financial) released its third quarter 2023 earnings report. The company reported a slight decrease in revenue, down 0.3% year-on-year to $3.43 billion. Despite the challenging market conditions, the company's Mobile, Industrial & IoT, and Automotive end-markets performed in-line or better than anticipated. However, the Communication Infrastructure & Other end market fell slightly below expectations.
Financial Highlights
The company's GAAP gross margin for the quarter was 57.2%, with a non-GAAP gross margin of 58.5%. GAAP operating margin was 28.9%, and non-GAAP operating margin was 35.0%. GAAP diluted Net Income per Share was $3.01, while non-GAAP diluted Net Income per Share was $3.70.
NXP Semiconductors NV (NXPI, Financial) generated $988 million in cash flow from operations. Net capex investments amounted to $200 million, resulting in a non-GAAP free cash flow of $788 million. The company continued its capital return policy, paying $262 million in cash dividends and repurchasing $306 million of its common shares. The total capital return for the quarter was $568 million, representing 72% of the third quarter non-GAAP free cash flow.
Key Financial Tables
The company's total revenue for Q3 2023 was $3.43 billion, down from $3.445 billion in Q3 2022. GAAP Gross Profit was $1.965 billion, a slight decrease from $1.967 billion in the same quarter of the previous year. Non-GAAP Gross Profit was $2.01 billion, a marginal increase from $1.999 billion in Q3 2022.
GAAP Operating Income was $992 million, down from $1.001 billion in Q3 2022. Non-GAAP Operating Income was $1.203 billion, a decrease from $1.271 billion in the same quarter of the previous year.
Looking Ahead
Despite the challenging and cyclical market environment, NXP Semiconductors NV (NXPI, Financial) expects revenue for the full year 2023 to be flat compared to 2022. The company's guidance for the fourth quarter of 2023 indicates a revenue range of $3.3 billion to $3.5 billion, with a GAAP gross margin between 56.5% and 57.6% and a non-GAAP gross margin between 58.0% and 59.0%.
Explore the complete 8-K earnings release (here) from NXP Semiconductors NV for further details.
