NXP Semiconductors NV (NASDAQ: NXPI) stock fell over 0.2% on 27th April, 2021 (as of 10:07:16 UTC-4 · USD; Source: Google finance) after the company posted lower than expected results for the first quarter of FY 21.
Meanwhile, On March 22, 2021, the company was added to the S&P 500 index. The automotive sector is actually NXP’s biggest business, and it was responsible for delivering $1.23 billion of the firm’s first-quarter revenue, which is up 24% from the year ago period. NXP’s Industrial & IoT division pulled in an additional revenue of $571 million, up 52%, while Mobile revenue came to $346 million, up 40%. Finally, NXP’s Communications Infrastructure & Other business category added $421 million in sales, up 4%. Automotive semiconductors have been in short supply this year because of tight capacity at chip foundries. The situation has forced some carmakers to idle factories.
The company has posted First-quarter non-GAAP gross margin of 54.2 percent, and non-GAAP operating margin was 30.9 percent. The company has generated the first-quarter cash flow from operations of $732 million, with net capex investments of $150 million, resulting in non-GAAP free cash flow of $582 million.
Additionally, the company has declared the payment of an interim dividend for the first quarter 2021 of $0.5625 per ordinary share, which reflects an increase of 50 percent from the prior quarterly dividend. In the first quarter of 2021 NXPI had returned $1.0 billion to shareholders through previously announced share repurchases and dividend payments.
For the second quarter of 2021, NXPI expects revenue to be in the range of $2.5 billion and $2.64 billion, the midpoint of which falls just above Wall Street’s average estimate of $2.56 billion. For the second quarter of 2021, the company expects non-GAAP gross profit to be in the range of $1,381 million to $1,474 million, with non-GAAP gross margin expected to be in the range of 55.2% to 55.8%, non-GAAP operating income to be in the range of $768 million to $841 million, operating margin to be in the range of 30.7% to 31.9% and financial expense to be $87 million.