NXP Semiconductors (NXPI) Q4 Earnings Report: In-Line Revenue, Disappointing Guidance

Key Financial Highlights:

* Revenue: $3.11 billion (vs. analyst estimate: $3.1 billion)
* Adjusted EPS: $3.18 (vs. analyst estimate: $3.13)
* Adjusted EBITDA: $1.24 billion (vs. analyst estimate: $1.22 billion)

Revenue Guidance for Q1 CY2025:

* Revenue: $2.83 billion (below analyst estimate: $2.87 billion)
* Adjusted EPS: $2.59 (below analyst estimate: $2.64)

Market Performance:

* Stock price: $207 (up 1.2% post-earnings)
* Market capitalization: $53 billion

Other Highlights:

* Annual revenue (2024): $12.61 billion (5% year-over-year decline)
* Operating margin: 21.7% (down from 26.5% in Q4 2023)
* Free cash flow margin: 9.4% (down from 28.1% in Q4 2023)
* Inventory days outstanding: 150 (38 days above 5-year average)

Company Overview:

* NXP Semiconductors (NASDAQ: NXPI) designs and manufactures chips for the automotive, industrial, mobile, and communications industries.

Demand Outlook:

* Analog chips are linked to economic growth and have longer product cycles (5-7 years).
* NXP Semiconductors has a 7.3% compounded annual growth rate over the past five years, below the industry average.

Quarterly Revenue Performance:

* 9.1% year-over-year revenue decline in Q4 2024, in line with estimates.
* Projected 9.6% year-over-year revenue decline in Q1 2025.
* Sell-side analysts expect flat revenue growth over the next 12 months.

Inventory Management:

* Inventory days outstanding of 150, indicating higher inventory levels compared to historical averages.

Conclusion:

NXP Semiconductors met EPS and EBITDA expectations in Q4 but missed revenue guidance for the next quarter. The mixed results and disappointing guidance suggest a challenging operating environment. The stock's post-earnings gain may reflect short-term optimism, but investors should consider the long-term fundamentals and valuation before making investment decisions.