NXP Semiconductors NV (NXPI, Financial) released its 8-K filing on July 23, 2024, reporting financial results for the second quarter ended June 30, 2024. NXP Semiconductors is a leading supplier of high-performance mixed-signal products, with significant market share in the automotive sector, industrial and Internet of Things (IoT), mobile, and communications infrastructure markets.
Key Financial Highlights
For Q2 2024, NXP Semiconductors NV (NXPI, Financial) reported:
- Revenue of $3.13 billion, meeting the analyst estimate of $3.124 billion.
- GAAP diluted Net Income per Share of $2.54, slightly above the estimated $2.52.
- Non-GAAP diluted Net Income per Share of $3.20.
- GAAP gross margin of 57.3% and non-GAAP gross margin of 58.6%.
- GAAP operating margin of 28.7% and non-GAAP operating margin of 34.3%.
Performance and Challenges
Despite a 5% year-on-year decline in revenue, NXP Semiconductors NV (NXPI, Financial) managed to deliver results consistent with its guidance. The company faced a challenging demand environment but successfully navigated the cyclical trough in its businesses. Kurt Sievers, NXP President and CEO, stated,
“NXP delivered quarterly revenue of $3.13 billion, consistent with our guidance, with all our focus end-markets performing in-line with our expectations. With our second quarter results and guidance for the third quarter NXP has successfully navigated the cyclical trough in our businesses and we expect to resume sequential growth.”
Financial Achievements
Key financial achievements for the quarter include:
- Cash flow from operations of $761 million.
- Net capex investments of $184 million, resulting in non-GAAP free cash flow of $577 million.
- Capital return to shareholders of $570 million, representing 99% of second-quarter non-GAAP free cash flow.
These achievements underscore NXP's ability to maintain resilient profitability and earnings in a challenging demand environment, which is crucial for sustaining investor confidence and long-term growth in the semiconductor industry.
Income Statement Summary
| Q2 2024 | Q1 2024 | Q2 2023 | Q-Q | Y-Y | |
|---|---|---|---|---|---|
| Total Revenue | $3,127M | $3,126M | $3,299M | 1% | -5% |
| GAAP Gross Profit | $1,792M | $1,783M | $1,881M | 1% | -5% |
| Non-GAAP Gross Profit | $1,833M | $1,818M | $1,926M | 1% | -5% |
| GAAP Operating Income | $896M | $856M | $937M | 5% | -4% |
| Non-GAAP Operating Income | $1,071M | $1,080M | $1,155M | -1% | -7% |
| GAAP Net Income | $658M | $639M | $698M | ||
| Non-GAAP Net Income | $829M | $840M | $896M | ||
| GAAP diluted Net Income per Share | $2.54 | $2.47 | $2.67 | ||
| Non-GAAP diluted Net Income per Share | $3.20 | $3.24 | $3.43 |
Analysis and Outlook
NXP Semiconductors NV (NXPI, Financial) has demonstrated resilience in a challenging market, maintaining profitability and delivering results in line with expectations. The company's strategic focus on high-growth markets such as automotive and industrial IoT, coupled with disciplined capital management, positions it well for future growth. The guidance for Q3 2024 indicates a potential sequential revenue increase, reflecting optimism about overcoming current market challenges.
For more detailed insights and analysis, visit GuruFocus.com.
Explore the complete 8-K earnings release (here) from NXP Semiconductors NV for further details.
