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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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.