Tech stock under pressure: NXP Semiconductors NV (NASDAQ: NXPI)

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NXP Semiconductors NV (NASDAQ: NXPI) stock fell over 1.1% in the pre-market session of Feb 3rd, 2020 (Source: Google finance) after the company reported fourth-quarter net income of $114 million compared with $276 million, in the year-ago period. On December 2, 2019, NXP had retired the $1.15 billion outstanding principal amount of the 1.0% Cash Convertible Senior Notes at maturity. The company in December had also completed the acquisition of the wireless connectivity assets of Marvell, according to the terms of the previously announced agreement from May 2019.the company has posted Fourth-quarter non-GAAP gross margin of 54.2 percent, and non-GAAP operating margin was 29.9 percent. the company has generated the full-year cash flow from operations of $2.37 billion, with net capex investments of $503 million, resulting in non-GAAP free cash flow of $1.87 billion.

NXPI in the fourth quarter of FY 19 has reported the adjusted earnings per share of $2.41, beating the analysts’ estimates for the adjusted earnings per share of $2.02, according to the Zacks Consensus Estimate. The company had reported 4 percent decline in the adjusted revenue to $2.3 billion in the fourth quarter of FY 19, beating the analysts’ estimates for revenue by 0.83%. The company has reported full-year revenue of $8.88 billion, which reflects a decline of 6 percent year-on-year, against a very challenging semiconductor industry backdrop. In 2019, the company had successfully acquired the Marvell wireless connectivity assets, and introduced new, innovative products and solutions.

Additionally, in 2019 NXP, returned $1.76 billion to shareholders through previously announced share repurchases and dividend payments. During the full year 2019, NXP had repurchased 15.9 million shares for a total cost of $1,443 million, paid cash dividends of $319 million. Further, the NXP Board of Directors has authorized to resume the share buy-back program in 2020, and authorized up to $2 billion of share repurchases to be executed at times and manners determined by the company management. On November 19, 2019, the company had approved the payment of an interim dividend for the fourth quarter 2019 of $0.375 per ordinary share. During the fourth quarter of 2019, NXP had repurchased 0.7 million shares for a total cost of $74 million and paid cash dividends of $105 million.

NXP expects revenue to be in the range of $2.2 billion to $2.26 billion for the first quarter, while analysts forecast revenue of $2.17 billion.

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