NXP SEMICONDUCTORS N.V Reports Q4 2022 Earnings Results on January 31 2023.

Earnings Overview

On January 31, 2023, NXP ($NASDAQ:NXPI) Semiconductors N.V. reported its fourth quarter earnings results for the fiscal year 2022, ending December 31, 2022. Furthermore, net income for the quarter was USD 3312.0 million, representing a 9.0% increase from the same period a year ago.

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Quarterly debt at the end of Q4 was $11.17 billion, cash position was $3.85 billion, resulting in net debt of $7.32 billion. During Q4, paid $221 million in dividends, repurchased $475 million of shares, and approved a 20% quarterly dividend increase. Days of inventory was 116, days receivable was 26, and days payable was 105, resulting in a cash conversion cycle of 37 days.

Q1 revenue is expected to be $3 billion, plus or minus about $100 million. Non-GAAP gross margin is expected to be about 58%, operating expenses are expected to be about $710 million, non-GAAP operating margin at 34.3%, non-GAAP financial expense of $77 million, non-GAAP tax rate of 16.5%, non-controlling interest and other of $10 million, average share count of 261.4 million shares.

About the Company

Income Snapshot

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Cash Flow Snapshot

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Balance Sheet Snapshot

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Key Ratios Snapshot

Some of the financial key ratios for NXPI are shown below. More…

Stock Price

NXP SEMICONDUCTORS N.V reported its Q4 2022 earnings results on Tuesday, January 31 2023. The stock opened at $182.4 and closed at $184.3, up by 2.7% from prior closing price of 179.5. This marks a significant increase in the company’s stock price; however, the overall performance of the stock was mixed with a few investors expressing some concerns about the company’s outlook heading into the next quarter. The company’s gross profit margin was higher than expected and came as a result of strong sales of semiconductor products and services.

Additionally, the company managed to reduce operating expenses by 10% year-over-year, indicating that management was able to effectively manage costs and make favorable decisions for the company’s bottom line. Overall, investors were generally pleased with NXP SEMICONDUCTORS N.V’s earnings report, as the stock saw an impressive uptick following the news release. Despite some concerns among some investors, the company appears to be on track to achieving its financial targets for the upcoming quarter and beyond. Live Quote…

Analysis

GoodWhale has conducted an analysis of NXP SEMICONDUCTORS N.V.’s fundamentals, and based on our Star Chart, we classify them as a ‘Gorilla’ – a type of company that has achieved stable and high revenue or earning growth due to its strong competitive advantage. For investors looking to capitalize on this, NXP SEMICONDUCTORS N.V. is strong in dividend, growth, profitability, and weak in asset. It also has a high health score of 8/10 with regard to its cash flows and debt, making it capable to sustain future operations in times of crisis. Therefore, investors who prefer companies that offer consistent performance over the long term may be interested in NXP SEMICONDUCTORS N.V. More…

Peers

NXP Semiconductors NV is a leading semiconductor company that offers a wide range of products and services. The company has a strong presence in the automotive, industrial, and consumer markets. NXP Semiconductors NV is a major competitor of STMicroelectronics NV, ON Semiconductor Corp, and Analog Devices Inc.

– STMicroelectronics NV ($OTCPK:STMEF)

STMicroelectronics NV is a global semiconductor company that designs, develops, manufactures and markets a broad range of semiconductor products, including integrated circuits, discrete devices and microelectronic components. The company has a market cap of 29.33B as of 2022 and a Return on Equity of 20.91%. STMicroelectronics NV is a leading provider of semiconductor solutions for a wide range of applications, including automotive, computing, consumer, industrial, networking, power and security. The company’s products are used in a variety of end-markets, including automotive, computing, consumer, industrial, networking, power and security.

– ON Semiconductor Corp ($NASDAQ:ON)

NXP Semiconductors N.V. is a holding company, which engages in the provision of semiconductor solutions that enable secure connections for a smarter world. It operates through the following segments: High Performance Mixed Signal (HPMS), Standard Products (SP), and Corporate and Other. The HPMS segment offers radio frequency power amplifiers, low noise amplifiers, filters, power management and protection devices, audio and voice processing devices, data management devices, and microcontrollers. The SP segment provides logic, analog, and power devices. The Corporate and Other segment comprises of activities of the group that cannot be allocated to the reportable segments. The company was founded by Frans van Houten and Klaas P.L. Wildeboer on August 6, 2006 and is headquartered in Eindhoven, Netherlands.

– Analog Devices Inc ($NASDAQ:ADI)

Analog Devices Inc. is a technology company that manufactures and sells semiconductor products. The company has a market cap of $72.69B as of 2022 and a return on equity of 3.56%. Analog Devices Inc. designs, manufactures, and markets a range of products used in various end markets, including automotive, communications, computing, consumer, industrial, medical, and military/aerospace.

Summary

NXP Semiconductors N.V. recently reported impressive financial results for their fourth quarter of FY2022, ending December 31 2022. Total revenue was up 19.9% year-over-year to $722 million, and net income increased by 9.0% to $3312 million. This is a positive sign that the company’s business strategy is paying off and investors have a reason to be optimistic about the stock. Looking ahead, investors should consider analyzing the company’s competitive advantage and market potential to further assess its long-term potential.