Oct 01, 2023

NXP Q3 2023 Earnings Report

NXP delivered third quarter results slightly above expectations, with revenue trends in Mobile, Industrial & IoT and Automotive end-markets performing in-line or better than anticipated.

Key Takeaways

NXP Semiconductors reported third quarter revenue of $3.43 billion, $34 million above the midpoint of guidance. The company's full year 2023 revenue is expected to be flat compared to 2022.

Revenue was $3.43 billion, down 0.3 percent year-on-year.

GAAP gross margin was 57.2 percent, GAAP operating margin was 28.9 percent and GAAP diluted Net Income per Share was $3.01.

Non-GAAP gross margin was 58.5 percent, non-GAAP operating margin was 35.0 percent, and non-GAAP diluted Net Income per Share was $3.70.

Cash flow from operations was $988 million, with net capex investments of $200 million, resulting in non-GAAP free cash flow of $788 million.

Total Revenue
$3.43B
Previous year: $3.45B
-0.3%
EPS
$3.7
Previous year: $3.81
-2.9%
Gross Profit
$1.97B
Previous year: $1.97B
-0.1%
Cash and Equivalents
$4.04B
Previous year: $3.76B
+7.5%
Free Cash Flow
$788M
Previous year: $862M
-8.6%
Total Assets
$24B
Previous year: $22.9B
+4.6%

NXP

NXP

NXP Revenue by Segment

Forward Guidance

NXP expects fourth quarter 2023 revenue to be in the range of $3.30 billion to $3.50 billion.

Positive Outlook

  • Total Revenue to be between $3,300 and $3,500 million
  • Gross Profit to be between $1,866 and $2,017 million
  • Gross Margin to be between 56.5% and 57.6%
  • Operating Income (loss) to be between $928 and $1,059 million
  • Operating Margin to be between 28.1% and 30.3%

Challenges Ahead

  • Financial Income (expense) to be $(77) million
  • Tax rate to be 15.5%-16.5%
  • NCI & Other to be $(9) million
  • Shares - diluted to be 260.0 million
  • Earnings Per Share - diluted to be between $2.71 and $3.13

Revenue & Expenses

Visualization of income flow from segment revenue to net income