NXP Semiconductors (NXPI) Earnings Decline Y-o-Y In Q3
Zacks Investment Research | Oct 26, 2016 11:19PM ET
NXP Semiconductors NV (NASDAQ:NXPI) reported third-quarter 2016 earnings per share of 26 cents, which decreased from $1.49 per share reported in the year-ago quarter.
Quarter Details
NXP Semiconductors’ revenues grew 62.2% year over year to $2.469 billion and marginally surpassed the Zacks Consensus Estimate of $2.465 billion.
Revenues were boosted by 62.5% increase in Product revenues and 51.5% increase in Corporate & Other revenues on a year-over-year basis. Also, increase in High Performance Mixed Signal (HPMS) segment revenues (up 80.3% on a year-over-year basis) positively impacted the quarter’s results.
NXP Semiconductors’ reported gross margin contracted 67 basis points (bps) on a year-over-year basis to 47.9%, primarily due to higher cost of sale. Non-GAAP gross profit margins during the quarter came in at 50.5% compared with 49.1% reported in the year-ago quarter.
The company’s operating margin decreased to 7.1% from 24.6% reported in the year-ago quarter. On a Non-GAAP basis operating margins came in at 27.9% compared with 29.5% reported in the year-ago period. The year-over-year decline was primarily due to higher operating expenses as a percentage of revenues. Operating expenses, as a percentage of revenues, increased to 40.9% from 24.2% reported in the year-ago quarter.
The company’s reported net income attributable to shareholders came in at $91 million compared with $361 million reported in the year-ago quarter.
NXP Semiconductors exited the quarter with cash and cash equivalents of approximately $1.57 billion compared with $1.33 billion reported in the previous quarter. Receivables were $1.16 billion at the end of the quarter compared with $1.08 billion reported in the previous quarter. NXP Semiconductors’ balance sheet has long-term debt of $8.76 billion compared with $8.27 billion reported in the previous quarter.
The company reported cash flow from operations of $718 million during the quarter. Free cash flow was $620 million. During the quarter, NXP Semiconductors repurchased approximately 6.5 million shares for $555 million.
Guidance
For the fourth quarter of fiscal 2016, NXP Semiconductors expects revenues in the range of $2.390 billion to $2.490 billion (mid-point $2.44 billion). The Zacks Consensus Estimate is pegged at $2.412 billion. Non-GAAP gross margin is expected to be in a range of 50.4% to 51%. Non-GAAP operating margin is expected to be in a range of 28% to 28.6%.
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