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Research Tree provides access to ongoing research coverage, media content and regulatory news on NXP SEMICONDUCTORS NV. We currently have 6 research reports from 1 professional analysts.
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NXP SEMICONDUCTORS NV
NXP SEMICONDUCTORS NV
Positive momentum in Automotive, positive impact of the synergies on margins
28 Jul 16
NXP reported Q2 revenues of $2,365m, corresponding to a sequential increase of 6.6% but to a 7.7% yoy decrease. In HPMS ($1,911m, up 5.4% sequentially, down 8% yoy), most of the segments were negative yoy by a double-digit in comparable figures, with the exception of Automotive, $805m, up 5.3% yoy. Standard Products have also witnessed a dip ($303m, +10.6% sequentially, -6.5% yoy). The non-GAAP gross margin reached 50% (46.5% for the GAAP gross margin due to €32m of restructuring charges), a 130bp increase yoy, while the non-GAAP operating profit came in at $606m, representing a 25.6% margin, a decrease of 220bp versus the previous year; the GAAP operating result was negative by $26m, due to $514m of PPA effects. The non-GAAP net income came in at $486m, for a GAAP net result of -$13m. The mid-point of the Q3 guidance points at revenues of $2.47bn, corresponding to a 4.2% sequential increase but to a 3.3% yoy decrease. The non-GAAP operating margin is expected to be around 27.5%, but c. $400m of PPA is expected, as well as c. $120m of other adjustments.
Strong perspectives as the merger is being processed
02 May 16
NXP reported Q1 results, and provided a detailed breakdown of historical revenues taking into consideration Freescale’s revenues, as well as the divestments made to obtain the regulatory approvals for the merger. The Q1 revenues came in at $2,224m, corresponding to an adjusted lfl sequential increase of 2.3% but to a yoy decrease of 10.7%. The situation was mixed in HPMS, with Automotive displaying some positive momentum (+8.8% sequentially, +1.3% yoy), as well as Secure Interface & Infrastructure in some way (+12.8% sequentially, but -25% yoy). On the other hand, Secure Identification Solutions (-5.8% sequentially, -4.5% yoy) and Secure Connected Devices (-9.1% sequentially, -10.3% yoy) were both down. The non-GAAP gross margin reached 50% (26.8% for the GAAP gross margin due to €496m of PPA effects), a 130bp increase yoy, while the non-GAAP operating profit came in at $519m, representing a 23.3% margin, a decrease of 450bp versus the previous year; the GAAP operating result was a negative $471m, due to PPA effects of $861m. The non-GAAP net income came in at $412m, for a GAAP net loss of $387m. The guidance provided for Q1 16 shows a sequential increase of 5% plus or minus 2%, for a non-GAAP gross margin of 50% and an operating margin of 25.3%. The company also hosted its Analysts Day on Thursday, 28 April, during which it announced it would implement a dividend by 2018, without indicating the amount. The expected top-line growth rate for the 2016-19 timeframe is 5-7%, with non-GAAP EBIT margins of 30-33% leading to an EBITDA objective of about $4bn.
Work in progress
04 Feb 16
NXP reported Q4 results, consolidating Freescale for the first time, which contributed to the quarter over approximately one month. Revenues reached $1,606m, corresponding to a sequential increase of 5.5%. In HPMS, most of the segments were clearly positive thanks to the extra revenues from the acquisition, with the exception of Secure Identification Solutions, which did not benefit from the consolidation and is down 16.4% sequentially (+0.9% yoy). Standard Products have also witnessed a dip (-16.6% sequentially, -18.1% yoy). The non-GAAP gross margin reached 50.2% (38.5% for the GAAP gross margin due to €167m of PPA effects), a 360bp increase yoy, while the non-GAAP operating profit came in at $433m, representing a 27% margin, an increase of 170bp versus the previous year; the GAAP operating result reached $1,013m, thanks to the recognition of $1,257m from the sale of the RF Power business. The non-GAAP net income came in at $341m, for a GAAP net result of $962m. The guidance provided for Q1 16 shows a sharp sequential increase due to the full consolidation of Freescale, with product revenues expected to grow by 38% at the mid-point of the guidance, for a non-GAAP operating margin of 23%.
Brutal cut in the guidance to prevent massive inventory build up
29 Oct 15
NXP reported Q3 revenues of $1,522m, corresponding to a sequential increase of 1.1% but almost flat yoy (+0.5%). In HPMS, most of the segments were clearly positive both sequentially and yoy, with the exception of Automotive, up 6.9% yoy but slightly down sequentially (-0.6%), but these good performances have been offset by a sharp fall in Secure Interfaces and Power, down 10.9% sequentially and 9.4% yoy. The non-GAAP gross margin reached 49.1% (48.6% for the GAAP gross margin), a 120bp increase yoy, while the non-GAAP operating profit came in at $449m, representing a 29.5% margin, an increase of 380bp versus the previous year. The non-GAAP net income came in at $381m, for a GAAP net result of $361m. The guidance provided for the next quarter shows a sharp sequential decline, with revenues expected to fall sequentially by the upper-teens range.
Roaring margins in light of an excellent quarter
31 Jul 15
NXP reported Q2 revenues of $1,506m, corresponding to a 2.7% sequential increase and 11.6% yoy. The biggest contributor was Automotive with $310m (+2.6% sequentially, +7.6% yoy), and the strongest growth yoy was reached by Secure Connected Devices ($276m, +39.4%), while Secure Identification Solutions witnessed the strongest sequential growth ($257m, +15.8%). Standard Products were relatively flat sequentially and yoy (-0.3% and +1.9%). The non-GAAP gross margin reached 48.7% (48.1% for the GAAP gross margin), flat yoy, while the non-GAAP operating profit came in at $418m, representing a 27.8% margin, an increase of 300bp versus the previous year. The non-GAAP net income came in at $351m, for a GAAP net result of $300m. The guidance communicated for the next quarter expects revenues between $1,492m and $1,542m, corresponding to a sequential increase of 3% at the midpoint, while non-GAAP gross and operating margin should respectively come in at 48.8% and 28%.
N+1 Singer - NCC Group - Further issues in Assurance
22 Feb 17
NCC released a trading update yesterday afternoon highlighting further issues in its Assurance division. Sales growth has been lower than expected in all regions, resulting in a significant reduction in full year expectations. We have reduced our EPS forecasts by 25% in FY’17 and 22%/25% in FY’18/’19 respectively. Escrow continues to perform in line with expectations. In response to these issues the Board has announced a strategic review into all of the Assurance businesses. The results of the strategic review are expected to be announced at the FY results in July. With an extended period of uncertainty on the horizon we believe it will be hard for investors to gain confidence in NCC in the short term. That said we see fundamental value in the stock. Escrow is unaffected by this warning and remains an extremely high quality business, which we value at £353m in our SOTP. At the current share price this leaves Assurance valued at c.5x cal’17 EBITDA. While this appears to be an attractive multiple for a rare cybersecurity asset, we would like further clarity on the underlying nature of the current issues, hence our Hold recommendation. Our 138p target price assumes a 12x EBITDA multiple for Assurance but we apply a 20% discount to the group to account for the current uncertainty.
20 Feb 17
Hayward Tyler Group* (HAYT): Trading update and financial position (CORP) | Petra Diamonds (PDL): Interim results (BUY) | Gemfields* (GEM): Interim results (CORP) | Premaitha Health* (NIPT): Middle East momentum (CORP) | Sound Energy (SOU): Acquisition update and TE-8 well spud (HOLD) | Proactis* (PHD): Interim trading on track (CORP) | 7digital* (7DIG): Automotive contract win (CORP)
21 Feb 17
Lighthouse Group* (LGT): Middle Britain growth (CORP) | Utilitywise* (UTW): Double-digit sales growth (CORP) | Trakm8* (TRAK): Earnings expectations cut again (CORP) | dotDigital* (DOTC): Myriad growth opportunities (CORP) | Artilium* (ARTA): Five-year Telenet deal secured and prepaid (CORP) | Netcall* (NET): Cloud investment pays off (CORP)
The Slide Rule
12 Jan 17
What is The Slide Rule? The Slide Rule has been designed to dramatically simplify the identification of the best companies in the UK small/mid-cap sector by making a quantitative assessment of the relative potential of each company. At its core, The Slide Rule aims to identify those companies that create genuine shareholder value through strong returns on capital and solid growth, but also present a value opportunity with the potential tailwind of earnings momentum. Companies are assessed within a Quality, Value, Growth and Momentum (QVGM) framework.
N+1 Singer - Small-cap quantitative research - New quality style screen + 11 quality focus stocks
09 Feb 17
We introduce our fourth and final style screen representing “quality”. This screens for stocks with the best combination of high returns on capital/equity, EBIT margins and operating cash-flow conversion rates. These criteria should help us monitor how strong underlying returns translate into share price performance over time and under varying market conditions. The screen selects the “best” 25 stocks from our universe of just over 500 stocks and, as usual, we focus on a shorter list of stocks we cover or otherwise know and believe to be particularly interesting. We provide brief investment summaries on these focus stocks on pages 4 – 9. We will monitor performance and refresh the screen in approximately 3-4 months time.
N+1 Singer - PROACTIS Holdings - H1 in line
20 Feb 17
A positive interim trading update confirms that H1 results are in line with expectations, with revenues up 36% to c£11.8m on the back of strong organic growth (13%) and an in-line contribution from acquisitions. We make no changes to our forecasts, recommendation and target price pending the release of interim results on 26 April.