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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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. 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.