NXP Semiconductors NV (NXPI) Reports Flat Year-Over-Year Revenue Amid Challenging Market Conditions
NXP Semiconductors NV (NASDAQ:NXPI) reports Q3 2023 revenue of $3.43 billion, a decrease of 0.3% year-on-year.
GAAP gross margin was 57.2%, and non-GAAP gross margin was 58.5%.
Non-GAAP free cash flow was $788 million, with $568 million returned to shareholders through dividends and share repurchases.
Company anticipates flat revenue for full year 2023 compared to 2022.
On November 7, 2023, NXP Semiconductors NV (NASDAQ:NXPI) released its third quarter 2023 earnings report. The company reported a slight decrease in revenue, down 0.3% year-on-year to $3.43 billion. Despite the challenging market conditions, the company's Mobile, Industrial & IoT, and Automotive end-markets performed in-line or better than anticipated. However, the Communication Infrastructure & Other end market fell slightly below expectations.
Financial Highlights
The company's GAAP gross margin for the quarter was 57.2%, with a non-GAAP gross margin of 58.5%. GAAP operating margin was 28.9%, and non-GAAP operating margin was 35.0%. GAAP diluted Net Income per Share was $3.01, while non-GAAP diluted Net Income per Share was $3.70.
NXP Semiconductors NV (NASDAQ:NXPI) generated $988 million in cash flow from operations. Net capex investments amounted to $200 million, resulting in a non-GAAP free cash flow of $788 million. The company continued its capital return policy, paying $262 million in cash dividends and repurchasing $306 million of its common shares. The total capital return for the quarter was $568 million, representing 72% of the third quarter non-GAAP free cash flow.
Key Financial Tables
The company's total revenue for Q3 2023 was $3.43 billion, down from $3.445 billion in Q3 2022. GAAP Gross Profit was $1.965 billion, a slight decrease from $1.967 billion in the same quarter of the previous year. Non-GAAP Gross Profit was $2.01 billion, a marginal increase from $1.999 billion in Q3 2022.
GAAP Operating Income was $992 million, down from $1.001 billion in Q3 2022. Non-GAAP Operating Income was $1.203 billion, a decrease from $1.271 billion in the same quarter of the previous year.
Looking Ahead
Despite the challenging and cyclical market environment, NXP Semiconductors NV (NASDAQ:NXPI) expects revenue for the full year 2023 to be flat compared to 2022. The company's guidance for the fourth quarter of 2023 indicates a revenue range of $3.3 billion to $3.5 billion, with a GAAP gross margin between 56.5% and 57.6% and a non-GAAP gross margin between 58.0% and 59.0%.
Explore the complete 8-K earnings release (here) from NXP Semiconductors NV for further details.
This article first appeared on GuruFocus.
