Interpreting NXP Semiconductors’ Scorecard


Nov. 20 2020, Updated 2:08 p.m. ET

Qualcomm buying NXP Semi

NXP Semiconductors (NXPI) is headed for a merger with Qualcomm (QCOM) in a $38 billion cash deal that could create the world’s largest supplier of automotive chips.

NXPI reported its 2Q17 on August 2, which could be one of its last quarterly reports as an independent company—if the deal with Qualcomm closes. This report sheds more light on how NXPI is coping with competition from Cypress Semiconductor (CY), Microchip Technology (MCHP), and Maxim Integrated Products (MXIM) as well as on what Qualcomm is going to get from its acquisition of NXP.

Article continues below advertisement

Revenue down 7%, but no problem

NXPI recently reported revenues of $2.2 billion, which was down 7.0% YoY (year-over-year) but slightly above the consensus estimate. Notably, the 7% decline in revenues was not necessarily a result of weak demand for NXPI products or for services during its latest quarter.

This top-line decline was due to a divestment of a revenue asset early this year, resulting in an imbalance in its YoY (year-over-year) top-line comparison.

As for its bottom line, NXPI posted adjusted EPS (earnings per share) of $1.51, which was slightly shy of the consensus estimate of $1.52.

Automotive sales hit record

NXPI’s automotive segment—one of its closely watched businesses—registered growth of 9.0% and hit record sales of $938 million in 2Q17. The management attributed this top-line milestone to the continued demand for NXPI’s automotive solutions.


More From Market Realist

    • CONNECT with Market Realist
    • Link to Facebook
    • Link to Twitter
    • Link to Instagram
    • Link to Email Subscribe
    Market Realist Logo
    Do Not Sell My Personal Information

    © Copyright 2021 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.