NXP Semiconductors Q3 Earnings Beat Estimates, Revenue Matches Expectations, Q4 Guidance Disappoints

NXP Semiconductors N.V. announced its third-quarter financial results, revealing earnings of $3.45 per share, surpassing the analyst consensus estimate of $3.43. The company's quarterly revenue was $3.25 billion, aligning with expectations but showing a decrease from the $3.43 billion reported in the same period last year. The non-GAAP gross margin was reported at 58.2%, with a non-GAAP operating margin of 35.5%. Cash flow from operations stood at $779 million, with net capital expenditures of $186 million, resulting in a non-GAAP free cash flow of $593 million.

NXP's president and CEO, Kurt Sievers, noted that while there was strength in the Communication Infrastructure, Mobile, and Automotive markets, the Industrial & IoT market faced macroeconomic challenges. The company projects fourth-quarter revenue to range between $3 billion and $3.2 billion, below the $3.35 billion estimate, with earnings expected between $2.93 and $3.33 per share, lower than the $3.64 estimate.

Following the announcement, NXP Semiconductors shares dropped by 5.02% in after-hours trading, reaching $225.

NXP Semiconductors is scheduled to host a conference call to discuss these results further on Tuesday at 8 a.m. EST.