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A month has gone by since the last earnings report for NXP Semiconductors (NXPI). Shares have added about 4.3% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is NXP due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
NXPI Q4 Earnings and Revenue Beat Estimates
NXP Semiconductors reported fourth-quarter 2024 non-GAAP earnings of $3.18 per share, beating the Zacks Consensus Estimate by 1.3%. The figure declined 14.3% year over year.
NXP Semiconductors’ top line of $3.11 billion came higher than the midpoint of management’s guidance. The figure declined 9.1% year over year. The figure beat the Zacks Consensus Estimate of $3.10 billion by 0.3%.
The automotive segment, the largest segment of NXPI, outshined the underperformance of Mobile, Industrial & IoT, and Communication Infrastructure & Others segments, which lagged the Zacks Consensus Estimate in the reported quarter.
NXPI’s Q4 2024 Details
Revenues from Automotive (57.5% of total revenues) in the fourth quarter were $1.79 billion, down 6% year over year. This figure surpassed the consensus mark of $1.732 billion.
Fourth-quarter revenues from Mobile (12.7% of total revenues) were $396 million, down 2% year over year. The figure missed the consensus mark of $399 million.
Revenues from Communication Infrastructure & Others (13.1% of total revenues) in the fourth quarter were $409 million, down 10% from the year-ago reported figure. This figure missed the consensus mark of $432.7 million.
Revenues from Industrial & IoT (16.6% of total revenues) were $516 million, which declined 22% from the year-ago level and lagged the consensus mark of $532.7 million.
NXPI’s non-GAAP gross profit in the fourth quarter was $1.789 billion, down 11% year over year. The non-GAAP gross margin contracted 120 basis points (bps) on a year-over-year basis to 57.5%.
For the fourth quarter, non-GAAP operating income declined 12.6% year over year to $1.07 billion. Operating margin contracted 140 bps to 34.2% from the year-ago quarter.
NXPI’s Balance Sheet & Cash Flow
As of Dec. 31, 2024, NXPI’s cash and cash equivalent, and short-term deposit balance was $3.29 billion, up from $3.15 billion as of Sept. 29, 2024.
The long-term debt was $10.354 billion at the end of the quarter under review compared with $9.683 billion at the end of the last reported quarter.