NXP Semiconductors NV (NASDAQ:NXPI) stock fell 0.72% (As on February 4, 11:42:40 AM UTC-4, Source: Google Finance) after the company’s fourth-quarter earnings and revenue that slightly topped analyst estimates, but its first-quarter forecast came in below Wall Street expectations. NXP’s automotive revenue fell 6% year over year $1.79 billion but was 2.9% above market expectations, according to Truist. Industrial and internet of things logged a 22% drop in revenue to $516 million, while mobile ticked down 2% to $396 million. Revenue in the communications infrastructure business fell 10% to $409 million. The chipmaker’s gross margin was 53.9% during the quarter versus 56.6% in the prior-year period. Fourth-quarter operating expenses fell to $963 million from $1.03 billion last year. Fourth quarter cash flow from operations was $391 million, with net capex investments of $99 million, resulting in non-GAAP free cash flow of $292 million.
Moreover, recently NXP announced it had entered into an definitive agreement to acquire TT Tech Auto, a leader in safety-critical systems and middleware for software-defined vehicles (SDVs). The all-cash transaction is valued at $625 million. On December 17, 2024, NXP announced it had entered into an definitive agreement to acquire Aviva Links, a provider of Automotive SerDes Alliance (ASA) compliant in-vehicle connectivity solutions in an all-cash transaction valued at $242.5 million. In addition, NXP announced industry-first wireless battery management system (BMS) based on Ultra-Wideband (UWB) connectivity, expanding its “FlexCom” family of wired and wireless BMS solutions. NXP has also announced the i.MX 94 family, the newest addition to its i.MX 9 series of applications processors, designed for industrial control, telematics, gateways, and building and energy control.
NXPI in the fourth quarter of FY 24 has reported the adjusted earnings per share of $3.18, beating the analysts’ estimates for the adjusted earnings per share of $3.14. The company had reported the adjusted revenue decline of 9 percent to $3.11 billion in the fourth quarter of FY 24, beating the analysts’ estimates for revenue of $3.1 billion.
Additionally, subsequent to the end of the fourth quarter, between January 1, 2025 and January 31, 2025, NXP executed via a 10b5-1 program additional share repurchases totaling $101 million.
NXP expects earnings per share to be between $2.29 and $2.79, for the first quarter of 2025, compared with the consensus estimate of $2.69. The company also guided for revenue between $2.725 billion and $2.925 billion, falling short of analysts’ expectations of $2.92 billion at the midpoint.