NXP Semiconductors Q1 Earnings Beat Estimates, Revenues Fall Y/Y

NXP Semiconductors NXPI reported first-quarter 2025 non-GAAP earnings of $2.64 per share, beating the Zacks Consensus Estimate by 1.93%. The figure declined 17% year over year.NXP Semiconductors’ top line of $2.84 billion beat the Zacks Consensus Estimate of $2.83 billion by 0.3% and came above the midpoint of management’s guidance. The figure declined 9.3% year over year.NXPI stock declined 8.5% in the pre-market trading hours of Tuesday.NXP Semiconductors N.V. Price, Consensus and EPS Surprise NXP Semiconductors N.V. price-consensus-eps-surprise-chart | NXP Semiconductors N.V. QuoteNXPI’s Q1 2025 DetailsRevenues from Automotive (59.0% of total revenues) in the first quarter were $1.67 billion, down 7.2% year over year and 6.5% sequentially.First-quarter revenues from Mobile (11.9% of total revenues) were $338 million, down 3.2% year over year and 14.6% from the previous quarter.Revenues from Communication Infrastructure & Others (11.1% of total revenues) were $315 million, representing a 21% decline from the year-ago quarter and a 23% drop sequentially.Revenues from Industrial & IoT (17.9% of total revenues) were $508 million, down 11% from the year-ago quarter and 2% sequentially.NXPI’s non-GAAP gross profit in the first quarter was $1.59 billion, down 12.5% year over year and 11% sequentially. The non-GAAP gross margin contracted 210 basis points year over year to 56.1%.Non-GAAP operating income declined 16.3% year over year to $904 million, with the operating margin shrinking 260 basis points to 31.9% from the year-ago quarter.NXPI’s Balance Sheet & Cash FlowAs of March 30, 2025, NXPI’s cash and cash equivalents were $3.988 billion, up from $3.292 billion as of December 31, 2024.Long-term debt at the end of the first quarter was $10.226 billion, slightly down from $10.354 billion in the prior quarter.Cash flow from operations was $565 million, up from $391 million in the previous quarter. Capital expenditures amounted to $139 million, leading to a non-GAAP free cash flow of $427 million.During the quarter, NXPI paid dividends of $258 million and repurchased shares worth $303 million. Post-quarter, it repurchased an additional $90 million in shares via a 10b5-1 program.NXPI’s Q2 GuidanceFor the second quarter of 2025, NXPI expects revenues in the range of $2.8–$3 billion. The Zacks Consensus Estimate for the same has been pegged at $2.83 billion, indicating a year-over-year decline of 9.58%.NXPI expects non-GAAP earnings per share in the band of $2.46–$2.86. The Zacks Consensus Estimate for the same has been pegged at $2.59, indicating a year-over-year decline of 20%. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)Zacks Rank and Other Stocks to ConsiderCurrently, NXPI carries a Zacks Rank #2 (Buy).Affirm AFRM, Super Micro Computer SMCI and Paycom Software PAYC are some top-ranked stocks that investors can consider in the broader Zacks Computer & Technology sector. ACIW, SMCI and ACMR sport a Zacks Rank #1 (Strong Buy) each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.AFRM shares have gained 4% for the past year. The Zacks Consensus Estimate for AFRM’s full-year 2025 earnings is pegged at a loss of 6 cents per share, up by 7 cents over the past 60 days, suggesting a growth of 96.7% from the year-ago quarter’s reported figure.SMCI shares have plunged 56.4% in the past year. The Zacks Consensus Estimate for SMCI’s full-year fiscal 2025 earnings have been revised downward to $2.52 in the past seven days reflecting a year-over-year growth of 14%.PAYC shares have gained 6% over the past year. The Zacks Consensus Estimate for PAYC’s full-year 2025 earnings is pegged at $8.72 per share, implying a rise of 6.21% from the year-ago quarter’s levels.Zacks Names #1 Semiconductor StockIt's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report NXP Semiconductors N.V. (NXPI): Free Stock Analysis Report Super Micro Computer, Inc. (SMCI): Free Stock Analysis Report Paycom Software, Inc. (PAYC): Free Stock Analysis Report Affirm Holdings, Inc. (AFRM): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks