The 10-second takeaway
For the quarter ended July 1 (Q2), NXP Semiconductors beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped slightly and GAAP earnings per share dropped to a loss.
Gross margins grew, operating margins improved, net margins dropped.
NXP Semiconductors notched revenue of $1.09 billion. The eight analysts polled by S&P Capital IQ expected a top line of $1.05 billion on the same basis. GAAP reported sales were 2.4% lower than the prior-year quarter's $1.12 billion.
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 $0.45. The nine earnings estimates compiled by S&P Capital IQ predicted $0.40 per share. GAAP EPS were -$0.36 for Q2 against $0.33 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 49.2%, 170 basis points better than the prior-year quarter. Operating margin was 13.8%, 100 basis points better than the prior-year quarter. Net margin was -8.2%, 1,570 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $1.15 billion. On the bottom line, the average EPS estimate is $0.56.
Next year's average estimate for revenue is $4.37 billion. The average EPS estimate is $1.76.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 569 members out of 577 rating the stock outperform, and eight members rating it underperform. Among 108 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 106 give NXP Semiconductors a green thumbs-up, and two 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 $30.29.
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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.