NASDAQ$NXPI

NXP Semiconductors · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

NXP delivered Q2 2023 revenue of $3.3 billion, performing better than anticipated across all focus end-markets. First-half results and Q3 guidance support confidence in navigating the cyclical downturn. Continued strength is seen in automotive, core-industrial, and communications infrastructure businesses.

NXP Semiconductors reported Q2 2023 revenue of $3.3 billion, a slight decrease of 0.4% year-over-year. The company's performance in all focus end-markets exceeded expectations. NXP is successfully navigating the cyclical downturn in consumer-exposed businesses, with continued strength in automotive, core-industrial, and communications infrastructure.

  • Revenue was $3.3 billion, down 0.4 percent year-on-year.
  • GAAP gross margin was 57.0 percent, GAAP operating margin was 28.4 percent and GAAP diluted Net Income per Share was $2.67.
  • Non-GAAP gross margin was 58.4 percent, non-GAAP operating margin was 35.0 percent, and non-GAAP diluted Net Income per Share was $3.43.
  • Cash flow from operations was $756 million, with net capex investments of $200 million, resulting in non-GAAP free cash flow of $556 million.

Headline financials

Total Revenue

$3.3B

Previous: $3.31B-0.4%
EPS (adj)

$3.43

Previous: $3.52-2.6%
Channel Inventory

1.6

Previous: 1.6+0.0%
Cash Conversion Cycle

103

No prior period
Gross Financial Leverage

2.1

No prior period
Net Financial Leverage

1.3

No prior period
Capital Expenditures

-$452M

Previous: -$548M+17.5%
Free Cash Flow

$246M

Previous: $122M+101.6%
Net Income

$698M

Previous: $670M+4.2%
Operating Income

$937M

Previous: $943M-0.6%
Gross Profit

$1.88B

Previous: $1.88B-0.1%
Cash & Equivalents

$3.86B

Previous: $3.55B+9.0%
Total Assets

$23.8B

Previous: $22.5B+5.6%
Stock-Based Comp

$102M

Previous: $89M+14.6%

Revenue & EPS history

NXP · Revenue · Quarterly

$3.3B

Q2 2023-0.4%vs Q2 2022
Beat estimate in 5 of 15 quarters(33%)
ActualEstimate

Revenue by segment

NXP · $3.3B total across 4 segments · Q2 2023

  • Automotive
    $1.87B+8.9%
  • Industrial & IoT
    $578M-18.9%
  • Comm. Infra & Other
    $571M+14.7%
  • Mobile
    $284M-26.8%

Forward guidance

NXP projects Q3 2023 revenue between $3.3 billion and $3.5 billion. GAAP gross margin is expected to be between 56.4% and 57.5%, while non-GAAP gross margin is projected to be between 57.9% and 58.9%.

Tailwinds

  • Total Revenue between $3,300 and $3,500 million
  • Q-Q 0% to 6%
  • GAAP Gross Profit between $1,861 and $2,013 million
  • GAAP Gross Margin between 56.4% and 57.5%
  • Operating Margin between 27.9% and 30.1%

Headwinds

  • Y-Y -4% to 2%
  • GAAP Operating Income between $921 and $1,053 million
  • Financial Income (expense) $(70) million
  • Tax rate 16.5%-17.5%
  • Shares - diluted 261.3 million

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2023

Historical avgQ2 2023

+0.1%

Avg return

Earnings day

+2.6%

Avg return

5 days after

+4.5%

Avg return

30 days after

57%

36 / 63 earnings

Positive

+11.4%

Q3 2018

Best reaction

-21.9%

Q3 2011

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2025+1.5%+1.1%+11.1%
Q1 2026-2.2%+26.2%+39.5%
Q3 2025-4.0%-5.6%-12.5%
Q2 2025+0.4%-0.5%-5.1%
Q1 2025-6.9%-4.1%-0.2%
Q4 2024-1.1%+4.0%+4.8%
Q3 2024-5.8%-2.0%-6.3%
Q2 2024-2.6%-5.8%-5.6%
Q1 2024+5.6%+6.2%+12.8%
Q4 2023+3.7%+8.6%+16.9%
Q3 2023+2.3%+2.8%+13.4%
Q2 2023+3.1%+4.7%-5.7%
Q1 2023+4.7%+1.9%+9.4%
Q4 2022+1.5%+5.2%-1.5%
Q3 2022+0.1%-0.4%+15.9%
Q2 2022-0.4%+5.0%-1.2%
Q1 2022+4.2%+3.9%+8.0%
Q4 2021+9.9%+4.6%-0.6%
Q3 2021+2.8%+11.6%+11.0%
Q2 2021+2.0%+3.6%+2.5%
Q1 2021+0.9%-4.5%+2.3%
Q4 2020+10.4%+13.4%+9.7%
Q3 2020-2.9%-1.5%+14.9%
Q2 2020-0.4%+1.5%+10.2%
Q1 2020+4.1%+1.1%+10.5%
Q4 2019+2.9%+4.3%-4.4%
Q3 2019+8.1%+11.5%+10.9%
Q2 2019+3.4%-1.9%-2.0%
Q1 2019+6.7%+9.2%-10.0%
Q4 2018+0.5%-1.1%+3.3%
Q3 2018+11.4%+9.8%+10.4%
Q2 2018-3.5%-3.1%-6.5%
Q1 2018-11.2%-5.3%+9.6%
Q4 2017-1.9%-1.4%+4.7%
Q3 2017-0.1%-0.1%-1.8%
Q2 2017-0.4%+1.7%+1.6%
Q1 2017+1.0%+1.1%+3.2%
Q4 2016+1.2%+2.2%+6.1%
Q3 2016-1.6%-0.6%-1.1%
Q2 2016-4.0%-4.2%+0.7%
Q1 2016+2.7%
Q4 2015+4.7%
Q3 2015-19.2%
Q2 2015+7.5%
Q1 2015-0.1%
Q4 2014-1.8%
Q3 2014-0.7%
Q2 2014-1.4%
Q1 2014+2.3%
Q4 2013+5.5%
Q3 2013+6.1%
Q2 2013+5.1%
Q1 2013+5.7%
Q4 2012+2.6%
Q3 2012-4.9%
Q2 2012+2.3%
Q1 2012+2.3%
Q4 2011+1.2%
Q2 2011-21.9%
Q3 2011-21.9%
Q1 2011-2.5%
Q4 2010-7.7%
Q3 2010-1.5%
Q2 2010
Q1 2010

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