NASDAQ$NXPI

NXP Semiconductors · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

NXP's revenue was consistent with guidance, with all focus end-markets performing in-line with expectations and successfully navigated the cyclical trough.

NXP Semiconductors reported Q2 2024 revenue of $3.13 billion, a 5% decrease year-over-year. The company's GAAP gross margin was 57.3%, with a GAAP operating margin of 28.7%, resulting in a GAAP diluted net income per share of $2.54. NXP anticipates resuming sequential growth and continues to manage profitability in a challenging demand environment.

  • Revenue was $3.13 billion, down 5% year-on-year.
  • GAAP gross margin was 57.3%, GAAP operating margin was 28.7% and GAAP diluted Net Income per Share was $2.54.
  • Non-GAAP gross margin was 58.6%, non-GAAP operating margin was 34.3%, and non-GAAP diluted Net Income per Share was $3.20.
  • Cash flow from operations was $761 million, with net capex investments of $(184) million, resulting in non-GAAP free cash flow of $577 million.

Headline financials

Total Revenue

$3.13B

Previous: $3.3B-5.2%
EPS

$2.54

Previous: $3.43-25.9%
Channel Inventory

7

Previous: 1.6+337.5%
Cash Conversion Cycle

111

Previous: 103+7.8%
Gross Financial Leverage

1.9

Previous: 2.1-9.5%
Net Financial Leverage

1.3

Previous: 1.3+0.0%
Capital Expenditures

-$411M

Previous: -$452M+9.1%
Free Cash Flow

$247M

Previous: $246M+0.4%
Net Income

$658M

Previous: $698M-5.7%
Operating Income

$896M

Previous: $937M-4.4%
Gross Profit

$1.79B

Previous: $1.88B-4.7%
Cash & Equivalents

$2.86B

Previous: $3.86B-26.0%
Total Assets

$23.2B

Previous: $23.8B-2.5%
R&D Expense

$594M

No prior period
Stock-Based Comp

$114M

Previous: $102M+11.8%

Revenue & EPS history

NXP · Revenue · Quarterly

$3.13B

Q2 2024-5.2%vs Q2 2023
Beat estimate in 5 of 15 quarters(33%)
ActualEstimate

Revenue by segment

NXP · $3.43B total across 4 segments · Q3 2023

  • Automotive
    $1.89B+4.8%
  • Industrial & IoT
    $607M-14.9%
  • Comm. Infra & Other
    $559M+7.9%
  • Mobile
    $377M-8.0%

Forward guidance

NXP projects revenue between $3.15 billion and $3.35 billion for Q3 2024. The company expects a GAAP gross margin between 57.0% and 58.0% and an operating margin between 28.8% and 30.9%.

Tailwinds

  • Total Revenue between $3,150 and $3,350 million
  • Gross Profit between $1,794 and $1,944 million
  • Gross Margin between 57.0% and 58.0%
  • Operating Income between $906 and $1,036 million
  • Operating Margin between 28.8% and 30.9%

Headwinds

  • Year-over-year Total Revenue decrease between -8% and -2%
  • GAAP Gross Profit is expected to include Purchase Price Accounting (“PPA”) effects, $(12) million
  • Share-based Compensation, $(15) million
  • Other Incidentals, $(6) million
  • GAAP Operating Income (loss) is expected to include PPA effects, $(42) 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 2024

Historical avgQ2 2024

+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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