Jul 04, 2021

NXP Q2 2021 Earnings Report

NXP delivered strong second-quarter results with revenue exceeding guidance and demonstrating robust year-over-year growth.

Key Takeaways

NXP Semiconductors reported a strong second quarter with revenue of $2.6 billion, a 43% increase year-over-year. The company is positive about long-term demand trends and has taken actions to increase supply to drive robust growth for the remainder of 2021 and into 2022.

Revenue was $2.6 billion, up 42.9 percent year-on-year.

GAAP gross margin was 54.8 percent, and GAAP operating margin was 22.1 percent.

Non-GAAP gross margin was 56.1 percent, and non-GAAP operating margin was 32.0 percent.

Cash flow from operations was $636 million, with non-GAAP free cash flow of $486 million.

Total Revenue
$2.6B
Previous year: $1.82B
+42.9%
EPS
$2.44
Previous year: $0.91
+168.1%
Channel Inventory (months)
1.6
Previous year: 2.4
-33.3%
Gross Profit
$1.42B
Previous year: $860M
+65.3%
Cash and Equivalents
$2.91B
Previous year: $3.27B
-10.9%
Free Cash Flow
$486M
Previous year: $339M
+43.4%
Total Assets
$20.6B
Previous year: $21.1B
-2.1%

NXP

NXP

NXP Revenue by Segment

Forward Guidance

NXP provides guidance for the third quarter of 2021, with revenue expected to be in the range of $2.775 billion to $2.925 billion.

Positive Outlook

  • Total Revenue: $2,775 to $2,925 million
  • Q-Q Growth: 7% to 13%
  • Y-Y Growth: 22% to 29%
  • Gross Profit: $1,518 to $1,620 million (GAAP)
  • Gross Margin: 54.7% to 55.4% (GAAP)

Challenges Ahead

  • Operating Income (loss): $650 to $732 million (GAAP)
  • Operating Margin: 23.4% to 25.0% (GAAP)
  • Financial Income (expense): $(99) million
  • Net cash paid for income taxes related to on-going operations is expected to be approximately $(90) million
  • Non-controlling interest is expected to be approximately $(9) million

Revenue & Expenses

Visualization of income flow from segment revenue to net income