The 10-second takeaway
For the quarter ended March 31 (Q1), NXP Semiconductors beat slightly on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue grew. Non-GAAP earnings per share expanded significantly. GAAP loss per share dropped.
Margins grew across the board.
NXP Semiconductors recorded revenue of $1.09 billion. The 13 analysts polled by S&P Capital IQ looked for sales of $1.07 billion on the same basis. GAAP reported sales were 11% higher than the prior-year quarter's $978.0 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.72. The 14 earnings estimates compiled by S&P Capital IQ predicted $0.49 per share. Non-GAAP EPS of $0.72 for Q1 were 279% higher than the prior-year quarter's $0.19 per share. GAAP EPS were -$0.06 for Q1 against -$0.10 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 44.5%, 70 basis points better than the prior-year quarter. Operating margin was 10.0%, 400 basis points better than the prior-year quarter. Net margin was -1.3%, 120 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $1.13 billion. On the bottom line, the average EPS estimate is $0.62.
Next year's average estimate for revenue is $4.61 billion. The average EPS estimate is $2.68.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 613 members out of 621 rating the stock outperform, and eight members rating it underperform. Among 108 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 105 give NXP Semiconductors a green thumbs-up, and three give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on NXP Semiconductors is outperform, with an average price target of $35.69.
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