Why NXP Semiconductors NV (NASDAQ: NXPI) stock is going gangbusters today

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NXP Semiconductors NV (NASDAQ: NXPI) stock surged over 7.6% on 29th October, 2019 (as of 11:09 am GMT-4; Source: Google finance) after the company posted better than expected results for the third quarter of FY 19. The company has delivered Non-GAAP gross margin of 53.7 percent, and non-GAAP operating margin of 30.3 percent. The company had cash flow from operations of $746 million, with net capex investments of $115 million, which resulted in non-GAAP free cash flow of $631 million.

NXPI in the third quarter of FY 19 has reported the adjusted earnings per share of $2.42, beating the analysts’ estimates for the adjusted earnings per share of $1.93, according to Zacks Consensus Estimate. The company had reported 7 percent fall in the adjusted revenue to $2.27 billion in the third quarter of FY 19, beating the analysts’ estimates for revenue by 1.20%.

Additionally, during the third quarter the company has returned $79 million to the shareholders, for a total of $6.6 billion returned to shareholders since July 2018. The company has approved the payment of an interim dividend for the third quarter 2019 of $0.375 per ordinary share, which reflects an increase of 50 percent from the prior quarterly dividend.

For the fourth quarter of FY19, the company expects non-GAAP total revenue to be in the range of $2,240 to $2,300. Gross Profit is expected to be in the range of $1,208 to $1,254, Gross Margin is expected to be in the range of 53.9% to 54.5, Operating Income (loss) is expected to be in the range of $670 to $702 and Operating Margin is expected to be in the range of 29.9% to 30.5%

Meanwhile, NXPI the world’s largest provider of automotive semiconductors, had recently announced the rollout of its life-saving RoadLINK V2X communication solution in the new Volkswagen Golf. The recently released Golf of the eighth generation is the first volume European car model that is equipped with V2X, will be providing a major boost to the deployment of the technology on European roads and beyond. The technology can prevent accidents by having cars communicate with each other, which are independent of car brands and without the support of cellular infrastructure. NXP and Volkswagen have closely collaborated for high-reliability and performance, along with the requirement for standardization of V2X communication that addresses cybersecurity and privacy protection.

On the other hand, NXPI and ART SpA, have partnered to create ultra-intuitive and completely immersive infotainment systems for luxury sports cars that are synonymous with speed, power, and exclusivity.

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