Oct 03, 2021

NXP Q3 2021 Earnings Report

NXP delivered third-quarter revenue growth and customer adoption of latest products amid robust demand.

Key Takeaways

NXP Semiconductors reported strong third-quarter results with revenue of $2.9 billion, a 26.2% increase year-over-year. The company saw growth across its end markets and continued to take actions to assure supply to customers.

Revenue was $2.9 billion, up 26.2 percent year-on-year.

GAAP gross margin was 55.3 percent, and GAAP operating margin was 24.9 percent.

Non-GAAP gross margin was 56.5 percent, and non-GAAP operating margin was 33.5 percent.

Cash flow from operations was $924 million, with net capex investments of $200 million, resulting in non-GAAP free cash flow of $724 million.

Total Revenue
$2.86B
Previous year: $2.27B
+26.2%
EPS
$2.84
Previous year: $1.62
+75.3%
Channel Inventory (months)
1.6
Previous year: 2.4
-33.3%
Gross Profit
$1.58B
Previous year: $1.09B
+45.2%
Cash and Equivalents
$2.3B
Previous year: $3.57B
-35.4%
Free Cash Flow
$724M
Previous year: $457M
+58.4%
Total Assets
$20B
Previous year: $21.1B
-5.3%

NXP

NXP

NXP Revenue by Segment

Forward Guidance

NXP projects Q4 2021 revenue to be in the range of $2.925 billion to $3.075 billion.

Positive Outlook

  • Total Revenue between $2,925 and $3,075 million
  • Q-Q growth between 2% and 7%
  • Y-Y growth between 17% and 23%
  • Gross Profit between $1,602 and $1,717 million
  • Gross Margin between 54.8% and 55.8%

Challenges Ahead

  • Operating Income between $710 and $805 million
  • Operating Margin between 24.3% and 26.2%
  • Financial Income (expense) of $(97) million
  • Net cash paid for income taxes related to on-going operations is expected to be approximately $(100) million
  • Non-controlling interest is expected to be approximately $(9) million

Revenue & Expenses

Visualization of income flow from segment revenue to net income