The 10-second takeaway
For the quarter ended Dec. 31 (Q4), NXP Semiconductors beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP loss per share dropped.
Gross margins expanded, operating margins shrank, net margins increased.
NXP Semiconductors booked revenue of $1.12 billion. The 12 analysts polled by S&P Capital IQ expected sales of $1.09 billion on the same basis. GAAP reported sales were 20% higher than the prior-year quarter's $931.0 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 $0.50. The 13 earnings estimates compiled by S&P Capital IQ averaged $0.47 per share. GAAP EPS were -$0.47 for Q4 compared to -$0.74 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 43.9%, 30 basis points better than the prior-year quarter. Operating margin was 3.0%, 480 basis points worse than the prior-year quarter. Net margin was -10.4%, 910 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $1.07 billion. On the bottom line, the average EPS estimate is $0.45.
Next year's average estimate for revenue is $4.63 billion. The average EPS estimate is $2.50.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 622 members out of 629 rating the stock outperform, and seven members rating it underperform. Among 131 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 129 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 $30.08.
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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. The Motley Fool recommends 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.