NXP Semiconductors NV (NXPI) Q3 2024 Earnings Call Highlights: Navigating Macroeconomic ...

GuruFocus.com11-06

Revenue: $3.25 billion, down 5% year-on-year, up 4% sequentially. Non-GAAP Operating Margin: 35.5%, up 50 basis points year-on-year. Automotive Revenue: $1.83 billion, down 3% year-on-year. Industrial...

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overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nNXP Semiconductors NV (NXPI) Q3 2024 Earnings Call Highlights: Navigating Macroeconomic ...\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-11-06 15:06 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/nxp-semiconductors-nv-nxpi-q3-070651901.html><strong>GuruFocus.com</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Revenue: $3.25 billion, down 5% year-on-year, up 4% sequentially.\nNon-GAAP Operating Margin: 35.5%, up 50 basis points year-on-year.\nAutomotive Revenue: $1.83 billion, down 3% year-on-year.\nIndustrial...</p>\n\n<a href=\"https://finance.yahoo.com/news/nxp-semiconductors-nv-nxpi-q3-070651901.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"NXPI","symbol_name":"恩智浦","start_time":0,"source_url":"https://finance.yahoo.com/news/nxp-semiconductors-nv-nxpi-q3-070651901.html","article_id":"2481642777","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/EmW1bv59aX5FtrFsnCrClA--~B/aD0yNDA7dz0yNDA7YXBwaWQ9eXRhY2h5b24-/https://media.zenfs.com/en/us.finance.gurufocus/87b42797554cbf1e3eafaf7d04221fe1"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2481642777","pubTimestamp":1730876811,"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"Revenue: $3.25 billion, down 5% year-on-year, up 4% sequentially.Non-GAAP Operating Margin: 35.5%, up 50 basis points year-on-year.Industrial and IoT Revenue: $563 million, down 7% year-on-year.Communication Infrastructure and Other Revenue: $451 million, down 19% year-on-year.Non-GAAP Gross Margin: 58.2%, down 30 basis points year-on-year.Non-GAAP Operating Expenses: $738 million, 22.7% of revenue.Non-GAAP Free Cash Flow: $593 million, 18% of revenue.GuruFocus has detected 5 Warning Signs with AQST.NXP's mobile segment revenue was up 8% year-on-year, reaching the high end of the guidance range.Revenue from the Industrial and IoT segment was down 7% year-on-year, falling below the guidance range due to weaker-than-expected global trends.The company anticipates Q4 revenue to be $3.1 billion, down about 9% year-on-year and 5% sequentially, reflecting broader macroeconomic weakness.Automotive revenue was down 3% year-on-year, with inventory digestion at Tier 1 customers and slowing demand","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":["earning"],"viewcount":null,"language":"en","relate_stocks":{"NXPI":"恩智浦","NXP":"Nuveen Select Tax-Free Income Po"},"translate_title":"恩智浦半导体(NXPI)2024年第三季度收益看涨期权亮点：驾驭宏观经济...","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"NXP":1,"NXPI":1},"content_text":"Revenue: $3.25 billion, down 5% year-on-year, up 4% sequentially.\nNon-GAAP Operating Margin: 35.5%, up 50 basis points year-on-year.\nAutomotive Revenue: $1.83 billion, down 3% year-on-year.\nIndustrial and IoT Revenue: $563 million, down 7% year-on-year.\nMobile Revenue: $407 million, up 8% year-on-year.\nCommunication Infrastructure and Other Revenue: $451 million, down 19% year-on-year.\nNon-GAAP Gross Margin: 58.2%, down 30 basis points year-on-year.\nNon-GAAP Operating Expenses: $738 million, 22.7% of revenue.\nNon-GAAP Earnings Per Share: $3.45.\nTotal Debt: $10.18 billion.\nCash Balance: $3.15 billion.\nNet Debt: $7.03 billion.\nNon-GAAP Free Cash Flow: $593 million, 18% of revenue.\nCash Flow from Operations: $779 million.\nDays of Inventory: 149 days.\nDistribution Channel Inventory: 1.9 months.\n\n\nWarning! GuruFocus has detected 5 Warning Signs with AQST.\n\nRelease Date: November 05, 2024\nFor the complete transcript of the earnings call, please refer to the full earnings call transcript.\n Positive Points \n\nNXP Semiconductors NV (NASDAQ:NXPI) delivered quarterly revenue of $3.25 billion, in line with guidance, showing resilience despite macroeconomic challenges.\nNon-GAAP operating margin for Q3 was 35.5%, which is 50 basis points above the year-ago period and 40 basis points above the midpoint of guidance.\nThe company experienced healthy growth in the China and Asia-Pacific automotive end markets, offsetting some of the weakness in Europe and North America.\nNXP's mobile segment revenue was up 8% year-on-year, reaching the high end of the guidance range.\nThe company returned $564 million to shareholders through dividends and share repurchases, representing 95% of non-GAAP free cash flow.\n\n Negative Points \n\nRevenue from the Industrial and IoT segment was down 7% year-on-year, falling below the guidance range due to weaker-than-expected global trends.\nNXP is facing increasing macro-related weakness in the industrial and IoT markets, particularly in Europe and North America.\nThe company anticipates Q4 revenue to be $3.1 billion, down about 9% year-on-year and 5% sequentially, reflecting broader macroeconomic weakness.\nAutomotive revenue was down 3% year-on-year, with inventory digestion at Tier 1 customers and slowing demand from European and North American car OEMs.\nNXP's gross margin was near the low end of guidance due to product mix, and the company expects further margin pressure in Q4 due to lower revenue levels.\n\n Q & A Highlights \nQ: Kurt, can you discuss the specific customer behavior changes you observed during the quarter, given the unexpected guide down? A: Kurt Sievers, President and CEO: We were surprised by a broadening weakness in the industrial and IoT market, particularly in August. This led to a more cautious stance from customers regarding their inventory positions. The weakness has now extended into the automotive segment, especially in Western markets, while China remains strong. Customers have become more cautious, reducing their inventory levels due to macroeconomic uncertainties.\nQ: Bill, can you explain the factors affecting gross margin and how we should think about it going forward? A: William Betz, CFO: Our Q3 gross margin was impacted by a mix shift, with weaker industrial IoT revenues and stronger mobile revenues. For Q4, we expect a mix headwind and lower revenues to affect margins. Utilization rates are in the low 70s, and we expect them to remain there into the first half of 2025. We are working on structural changes to improve gross margins in the long term, which we will discuss at our Investor Day.\nQ: How does NXP's exposure to China-based cars compare to European premium cars, and what are the implications if China gains market share? A: Kurt Sievers, President and CEO: Our content per vehicle in high-end Chinese cars is similar to Western premium cars. Chinese platforms are developed faster, allowing us to tap into higher content opportunities more quickly. We believe the growth in China is sustainable due to their competitiveness and the strong EV penetration, which benefits NXP.\nQ: Can you provide more color on the industrial slowdown and the geographic differences in performance? A: Kurt Sievers, President and CEO: The industrial and IoT weakness is predominantly in Europe and the US, particularly in factory automation. In China, the strength is more in consumer IoT, which is seasonally strong in Q4. Overall, the strength in China cannot fully offset the weakness in Western markets.\nQ: How is NXP managing the pricing environment, especially with the current market challenges? A: Kurt Sievers, President and CEO: For 2024, pricing will be neutral, and we expect a low single-digit ASP erosion in 2025, which is typical. We focus on differentiated products and do not compete on price alone. If necessary, we may exit product categories where price is the only competitive factor, as we have done in the past.\nFor the complete transcript of the earnings call, please refer to the full earnings call transcript.This article first appeared on \nGuruFocus.","kind":null,"is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.1","shortVersion":"4.29.1","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2481642777"}