Dec 31, 2022

NXP Q4 2022 Earnings Report

NXP's revenue increased by 9% year-on-year, reaching $3.31 billion, in line with guidance, and non-GAAP free cash flow was $843 million.

Key Takeaways

NXP Semiconductors reported a strong fourth quarter with revenue of $3.31 billion, a 9% increase year-on-year. The company's automotive business performed well, while consumer IoT and mobile businesses experienced softening demand. NXP is managing distribution channel inventory levels well below long-term targets.

Fourth Quarter revenue was $3.31 billion, up 9.0 percent year-on-year.

Fourth Quarter GAAP gross margin was 57.1 percent, and GAAP operating margin was 29.6 percent.

Fourth Quarter non-GAAP gross margin was 58.0 percent, and non-GAAP operating margin was 36.5 percent.

Fourth Quarter cash flow from operations was $1,076 million, with net capex investments of $233 million, resulting in non-GAAP free cash flow of $843 million.

Total Revenue
$3.31B
Previous year: $3.04B
+9.0%
EPS
$3.73
Previous year: $3.2
+16.6%
Gross Profit
$1.89B
Previous year: $1.71B
+10.8%
Cash and Equivalents
$3.85B
Previous year: $2.83B
+35.9%
Free Cash Flow
$843M
Previous year: $519M
+62.4%
Total Assets
$23.2B
Previous year: $20.9B
+11.4%

NXP

NXP

NXP Revenue by Segment

Forward Guidance

NXP Semiconductors anticipates first quarter 2023 revenue to be in the range of $2.90 billion to $3.10 billion.

Challenges Ahead

  • Total Revenue Q-Q -12% to -6%
  • Total Revenue Y-Y -8% to -1%
  • Gross Margin 56.3% to 57.4%
  • Operating Margin 26.1% to 28.5%
  • Earnings Per Share - diluted $2.12 to $2.51

Revenue & Expenses

Visualization of income flow from segment revenue to net income