The 10-second takeaway
For the quarter ended June 30 (Q2), NXP Semiconductors met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew. Non-GAAP earnings per share expanded significantly. GAAP earnings per share expanded.
Gross margins dropped, operating margins shrank, net margins grew.
NXP Semiconductors tallied revenue of $1.19 billion. The 10 analysts polled by S&P Capital IQ expected to see revenue of $1.18 billion on the same basis. GAAP reported sales were 8.6% higher than the prior-year quarter's $1.09 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
EPS came in at $0.71. The 12 earnings estimates compiled by S&P Capital IQ predicted $0.64 per share. Non-GAAP EPS of $0.71 for Q2 were 58% higher than the prior-year quarter's $0.45 per share. GAAP EPS were $0.43 for Q2 against -$0.36 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
For the quarter, gross margin was 45.0%, 450 basis points worse than the prior-year quarter. Operating margin was 14.2%, 200 basis points worse than the prior-year quarter. Net margin was 9.3%, much better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $1.24 billion. On the bottom line, the average EPS estimate is $0.79.
Next year's average estimate for revenue is $4.73 billion. The average EPS estimate is $2.89.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 614 members out of 620 rating the stock outperform, and six members rating it underperform. Among 135 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 132 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 $35.96.
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