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NXPI — Nxp Semiconductors NV News Story

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Netherlands' NXP Semiconductors Q3 revenue rises 19%, slightly beats estimates

Netherlands' NXP Semiconductors Q3 revenue rises 19%, slightly beats estimates


Overview

  • Netherlands chipmaker's Q3 revenue up 19% yr/yr, slightly beating analyst expectations

  • Adjusted EPS for Q3 beat analyst expectations

  • Company authorized new $5 bln share repurchase program


Outlook

  • NXP forecasts Q4 revenue between $3.75 bln and $3.95 bln

  • Company expects Q4 non-GAAP gross margin between 58.5% and 59.5%

  • NXP projects Q4 non-GAAP diluted EPS between $4.14 and $4.58


Result Drivers

  • AUTOMOTIVE AND INDUSTRIAL - Co said accelerating growth in automotive and industrial segments helped drive Q3 results

  • DATA CENTER INFRASTRUCTURE - Co said continued momentum in data center infrastructure contributed to Q3 performance

  • PROFITABILITY AND CASH FLOW - Co said strong profitability and free cash flow enabled investments in innovation and manufacturing expansion


Company press release: ID:nGNX1rD1Yb


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

Slight Beat*

$3.79 bln

$3.76 bln (22 Analysts)

Q3 Adjusted EPS

Beat

$4.20

$4.09 (20 Analysts)

Q3 EPS

$3.48

Q3 Adjusted Gross Margin

58.6%

*Applies to a deviation of less than 1%; not applicable for per-share numbers.


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 21 "strong buy" or "buy", 8 "hold" and 1 "sell" or "strong sell"

  • The average consensus recommendation for the semiconductors peer group is "buy"

  • Wall Street's median 12-month price target for NXP Semiconductors NV is $307.50, about 25.1% above its October 26 closing price of $245.83

  • The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 17 three months ago


Reuters Recommended Reads

  • Oct 26 - Unconventional AI buys Israeli chip startup NeuReality to speed product development

  • Oct 26 - Cadence unveils suite of AI models that chipmakers can run in-house

  • Oct 26 - Cadence tops Q3 profit estimates, hikes forecast on AI-driven design strength


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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