The 10-second takeaway
For the quarter ended Dec. 31 (Q4), NXP Semiconductors met expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank, and GAAP loss per share improved.
Margins shrank across the board.
NXP Semiconductors logged revenue of $931 million. The seven analysts polled by S&P Capital IQ hoped for sales of $930 million on the same basis. GAAP reported sales were 14% lower than the prior-year quarter's $1.08 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.24. The eight earnings estimates compiled by S&P Capital IQ predicted $0.24 per share on the same basis. GAAP EPS were -$0.74 for Q4 versus -$0.47 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 43.6%, 410 basis points worse than the prior-year quarter. Operating margin was 7.8%, 650 basis points worse than the prior-year quarter. Net margin was -19.5%, 860 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $956.5 million. On the bottom line, the average EPS estimate is $0.18.
Next year's average estimate for revenue is $4.13 billion. The average EPS estimate is $1.63.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 480 members rating the stock outperform and four members rating it underperform. Among 102 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 102 give NXP Semiconductors a green thumbs-up, and none 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 $21.38.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Motley Fool newsletter services have recommended buying shares of NXP Semiconductors. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.