Company Update (NASDAQ:NXPI): NXP Semiconductors NV Reports Second Quarter 2016 Results

NXP Semiconductors NV (NASDAQ:NXPI) reported financial results for the second quarter 2016, ended July 3, 2016, and provided guidance for the third quarter of 2016.

“NXP delivered solid results for the second quarter of 2016, with revenue at $2.37 billion, an increase of 57 percent year on year, an increase of 6 percent versus the prior quarter and $20 million above the mid-point of our guidance.  HPMS segment revenue was $2.01 billion, an increase of 76 percent year-on-year, and an increase of approximately 5 percent from the prior quarter.  Standard Product segment revenue was $303 million, a decrease of 6 percent year-on-year and an increase of 11 percent from the prior quarter.  Our GAAP diluted net loss per share was ($0.04), primarily due to merger-related accounting, and our non-GAAP diluted earnings per share of $1.39was near the high end of our guidance, as a result of positive fall through on incrementally higher revenue and good operating expense control.  During the quarter, we repaid $100 million of debt and we returned cash to shareholders, by repurchasing $365 million or approximately 4.3 million shares of our stock,” said Richard Clemmer, NXP Chief Executive Officer.

“On a comparable basis, taking into account the Freescale merger and product line divestures, our year-on-year revenue trends reflect the semiconductor industry weakness that accelerated throughout the second half of 2015.  On a comparable basis, total revenue was down approximately 8 percent year on year, notwithstanding our Automotive operating segment which delivered positive year-on-year comparable growth.  We believe we have begun to see incremental positive trends in a number of our businesses, with comparable sequential revenue up approximately 6 percent into the second quarter.  While we anticipate many of the headwinds experienced in the second half of 2015 should begin to generally subside in the coming quarters, the overall demand environment currently continues to be subdued.

“In summary, I am pleased with the progress we continue to achieve.  In the second quarter we took another step in our journey, as we announced the divesture of our Standard Products business.  We continue to anticipate the transaction to close in the first quarter of 2017.  I would like to thank all of the members of the Standard Products business for their years of hard work and dedication,” said Clemmer. (Original Source)

Shares of NXP Semiconductors are up nearly one percent to $88.10 in pre-market trading. NXPI has a 1-year high of $100.26 and a 1-year low of $61.61. The stock’s 50-day moving average is $82.71 and its 200-day moving average is $80.44.

On the ratings front, NXPI has been the subject of a number of recent research reports. In a report released yesterday, Oppenheimer analyst Rick Schafer reiterated a Buy rating on NXPI, with a price target of $100, which implies an upside of 14.4% from current levels. Separately, on July 26, Pacific Crest’s John Vinh reiterated a Buy rating on the stock and has a price target of $105.

According to, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Rick Schafer and John Vinh have a total average return of 14.4% and 5.1% respectively. Schafer has a success rate of 69.2% and is ranked #29 out of 4087 analysts, while Vinh has a success rate of 47.1% and is ranked #876.

The street is mostly Bullish on NXPI stock. Out of 15 analysts who cover the stock, 12 suggest a Buy rating and 3 recommend to Hold the stock. The 12-month average price target assigned to the stock is $108.33, which implies an upside of 23.9% from current levels.

NXP Semiconductors NV designs, manufactures and supplies mixed-signal and standard product solutions. It operates through the following business segments: High Performance Mixed Signal and Standard Products. The High Performance Mixed Signal segment delivers high performance mixed signal solutions to customers to satisfy their system and sub-system needs across eight application areas: automotive, identification, mobile, consumer, computing, wireless infrastructure, lighting, and industrial. The Standard Products segment supplies a broad range of standard semiconductor components, such as small signal discretes, power discretes, protection and signal conditioning devices and standard logic devices, which largely produce in dedicated in-house high-volume manufacturing operations. The portfolio consists of a large variety of catalog products, using widely-known production techniques, with characteristics that are largely standardized throughout the industry as well as leading discrete solutions especially in the field of ESD protection / EMI filtering and low loss rectification and power switching.


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