NXP Semiconductors NV (NASDAQ:NXPI) stock rose 2.64% (As on November 7, 11:42:14 AM UTC-4, Source: Google Finance) after the company reported third-quarter results that topped Wall Street estimates. The automotive unit, which drives the bulk of growth, reported a 5% rise year-on-year to $1.89B. The IoT unit saw revenue decline 15% in Q3 year-on-year, while mobile revenue was down 8% year-on-year.

NXPI in the third quarter of FY 23 has reported the adjusted earnings per share of $3.70, beating the analysts’ estimates for the adjusted earnings per share of $3.61. The company had reported 0.3 percent fall in the adjusted revenue to $3.43 billion in the third quarter of FY 23, missing the analysts’ estimates for revenue of $3.40 billion. Non-GAAP gross margin was 58.5 percent and non-GAAP operating margin was 35.0 percent

Additionally, Cash flow from operations was $988 million, with net capex investments of $200 million, resulting in non-GAAP free cash flow of $788 million. During the third quarter of 2023, NXP continued to execute its capital return policy with the payment of $262 million in cash dividends, and the repurchase of $306 million of its common shares. The total capital return of $568 million in the quarter represented 72 percent of third quarter non-GAAP free cash flow. The interim dividend for the third quarter 2023 was paid in cash on October 5, 2023 to shareholders of record as of September 13, 2023. Subsequent to the end of the third quarter, between October 2, 2023 and November 3, 2023, NXP executed via a 10b5-1 program additional share repurchases totaling $124 million

Looking ahead, the company guided Q4 adjusted EPS of $3.65 on revenue of $3.4B. That compared with estimates for $3.65 a share on revenue of $3.43B.

On the other hand, Semiconductor industry players Bosch, Infineon, Nordic Semiconductor, NXP, and Qualcomm Technologies, announced the planned formation of a joint-venture aimed at advancing the adoption of RISC-V globally. Further, on August 8, 2023, TSMC, Bosch, Infineon, and NXP announced the planned formation of a joint venture European Semiconductor Manufacturing Company (ESMC) GmbH, in Dresden, Germany to provide advanced semiconductor manufacturing services predominantly to the automotive and industrial sectors. The planned 300mm fab joint venture will be 70% owned by TSMC, with Bosch, Infineon, and NXP each holding 10% equity stake. The company has also announced it is strengthening its European research and development (R&D) through grants to be provided via the 2nd Important Project of Common European Interest on Microelectronics and Communication Technologies (IPCEI ME/CT).