NXP Semiconductors NV (NASDAQ:NXPI) stock rose 4.57% (As on November 1, 12:03:34 AM UTC-4, Source: Google Finance) after the company posted better than expected results for the third quarter of FY 22. However, the company was impacted by the weakening macro-environment in our consumer-exposed IoT business. At the same time, demand in both the automotive and industrial markets continues to be resilient, driven by secular and company-specific drivers, along with incrementally improved supply. The automotive segment is NXP’s largest and also its fastest-growing, delivering revenue of $1.8 billion in the quarter, up 24% from a year ago. Still, NXP actually saw growth across the board. The “Industrial & IoT” segment did $713 million in sales, up 17%, while “Communications Infrastructure and Other” added an additional $518 million in revenue, up 14%. The company’s smallest business, Mobile, generated $410 million in sales, up 19%. Cash flow from operations was $1,144 million, with net capex investments of $281 million, resulting in non-GAAP free cash flow of $863 million.
NXPI in the third quarter of FY 22 has reported the adjusted earnings per share of $4.98, beating the analysts’ estimates for the adjusted earnings per share of $3.66, according to the Zacks Consensus Estimate. The company had reported the adjusted revenue growth of 20.4 percent to $3.45 billion in the third quarter of FY 22, beating the analysts’ estimates for revenue by 0.55%. Non-GAAP gross margin was 58.0 percent, and non-GAAP operating margin was 36.9 percent.
Additionally, during the third quarter of 2022, NXP repurchased 2.50 million shares for a total cost of $400 million and paid cash dividends of $223 million, returning $623 million to shareholders. On a trailing twelve month basis capital return to shareholders represented $2,448 billion or 98 percent of non-GAAP free cash flow. Between October 3, 2022 and October 28, 2022, NXP repurchased via a 10b5-1 program an additional 1.77 million shares for a total cost of $260 million. Further, the company has declared an interim dividend for the third quarter 2022 of $0.845 per ordinary share. The interim dividend was paid in cash on October 6, 2022 to shareholders of record as of September 15, 2022.
The company expects fourth-quarter revenue of between $3.2 billion and $3.4 billion, nicely ahead of Wall Street’s consensus estimate of $3.41 billion.
In addition, NXP has announced its new higher power BTS7202 RX Front End Modules (FEM) and BTS6403/6305 pre-drivers for 5G massive multiple-input multiple-output (MIMO) going up to 20 W per channel.