NXP Semiconductors NV (NASDAQ:NXPI) stock rose 0.30% (As on Feb 1, 11:49:55 AM UTC-4, Source: Google Finance) after the company posted better than expected results for the fourth quarter of FY 21. The company has experienced significant design win traction across the entire portfolio and especially within the areas of the strategic growth drivers. The company continues to see growing customer demand, outstripping supply, as inventory across all end markets remains very lean.
NXPI in the fourth quarter of FY 21 has reported the adjusted earnings per share of $3.08, beating the analysts’ estimates for the adjusted earnings per share of $3.01, according to Zacks Investment Research. The company had reported the adjusted revenue growth of 21.2 percent to $3.04 billion in the fourth quarter of FY 21, beating the analysts’ estimates for revenue of $3 billion. Fourth-quarter non-GAAP gross margin was 57.3 percent, and non-GAAP operating margin was 34.9 percent.
Meanwhile, during the quarter, the company had announced the new i.MX 93 family of applications processors designed for automotive, smart home, smart building and smart factory applications, which leverage edge machine learning to anticipate and automate system behavior based on user needs. The i.MX 9 series will enable developers to address diverse areas, from voice-assisted smart home and building systems, to low-power industrial gateways and automotive driver monitoring systems.
Further, NXP announced a collaboration with the Ford Motor Company to deliver enhanced driver experiences, convenience and services across its global fleet of vehicles, including the 2021 Ford F-150 pickup, Mustang Mach-E and Bronco SUVs. Ford’s new fully networked vehicle architecture implements NXP’s vehicle networking processors and the i.MX 8 Series processors, working together to upgrade vehicles that help improve customer lifestyle and streamline the ownership experience.
Additionally, the company has approved a 50 percent increase in the quarterly cash dividend to $0.845 per ordinary share. The interim dividend will be paid in cash on April 6, 2022 to shareholders of record as of March 15, 2022. In addition, the NXP Board of Directors approved a new $2.00 billion 2022 Share Repurchase Program. The new share repurchase authorization is in addition to the approximately $1.35 billion remaining for repurchase under previously authorized share repurchase programs. The company has also fully redeemed the $1.00 billion of outstanding principal of the 3.875% Senior Notes due 2022.
NXP projects that the revenue will grow 8-to-12 percent 3-year CAGR, 2021 to 2024.