Fri, May. 1, 12:34 PM
- After giving back most of yesterday's initial post-earnings gains amid a market selloff, NXP (NXPI +4.3%) is up sharply today as upbeat sell-side reactions arrive. Merger partner Freescale (FSL +3.7%) is naturally following NXP higher.
- Needham's Rajvindra Gill observes that while NXP offered soft Q2 guidance (as many expected), it guided on its CC (transcript) for full-year revenue of $6.2B-$6.3B, roughly in-line with consensus and good for 11% Y/Y growth at the midpoint. He adds Q1 gross margin of 48.5% was above a 47.8% consensus, and that Q2 GM guidance of 48.5% was 40 bps above consensus.
- Gill, who launched coverage on NXP with a Strong Buy rating and $140 target in March, still sees NXP/Freescale delivering $9+ in 2017 EPS, and asserts the post-merger company will be "a powerhouse in autos, microcontrollers (MCUs), and the Internet-of-Things (IoT)."
- Separately, an ABI Research teardown of the Apple Watch's S1 chip module turned up (as expected) an NXP NFC controller IC, as well as a second NXP chip (motion co-processor?). AMS provides a complementary NFC signal booster chip.
Thu, Apr. 30, 9:40 AM
- In addition to slightly missing Q1 revenue estimates (while beating on EPS), NXP (NASDAQ:NXPI) is guiding for Q2 revenue of $1.485B-$1.535B and EPS of $1.33-$1.43, mostly below a consensus of $1.54B and $1.41. However, a soft outlook was expected after many peers provided one last week.
- With Apple NFC chip and M8 motion co-processor demand still providing a boost, high-performance mixed-signal chip sales (75% of total revenue) rose 21% Y/Y in Q1 to $1.1B. Standard products (analog/power management chips) rose 9% to $323M.
- Boosting Q1 EPS, gross margin (non-GAAP) was 48.5%, +190 bps Q/Q and -100 bps Y/Y, and slightly above guidance of 48%; Q2 GM guidance is at 48.5%. Also: GAAP operating expenses only rose 2% Y/Y to $409M; R&D spend rose by $10M to $199M, but SG&A fell by $3M to $210M.
- Merger partner Freescale (NYSE:FSL) is following NXP higher. Freescale posted a Q1 beat and soft guidance last week.
- Q1 results, PR
Wed, Apr. 29, 10:45 PM| Comment!
Fri, Apr. 24, 2:03 PM
- Though the Nasdaq is up 0.7% thanks to market-pleasing earnings from Google, Microsoft, and Amazon, chip stocks (SOXX -2.1%) are adding to their Thursday losses after Freescale, Altera, Microsemi, and Maxim joined the ranks of chipmakers offering soft Q2 guidance; Texas Instruments, Xilinx, and Qualcomm did so on Wednesday afternoon.
- NXP (NXPI -4.3%), set to merge with Freescale in a cash/stock deal, is selling off ahead of its April 29 Q1 report. RF chipmakers Skyworks (SWKS -3.8%), Qorvo (QRVO -4.4%), and Avago (AVGO -5.2%) are also seeing steep declines.
- Other decliners include a slew of telecom/networking, microcontroller, and analog/mixed-signal chipmakers. The group includes Marvell (MRVL -3%), ON Semi (ON -6.9%), Atmel (ATML -3.3%), Cypress (CY -4%), Lattice (LSCC -3.9%), Semtech (SMTC -6.9%), Cavium (CAVM -6%), PMC-Sierra (PMCS -2.9%), InPhi (IPHI -3.8%), and Silicon Labs (SLAB -2.9%). Chip packaging/testing firm Amkor (AMKR -5.7%) is also off; its Q1 report arrives on Monday.
- As was the case with TI and Xilinx, soft telecom equipment chip demand was often blamed by those guiding light yesterday afternoon. Freescale (FSL -3.5%) stated it expects network processor division sales to be down Q/Q and RF (base station power amplifier) division sales to be flat. Microcontroller, automotive, and analog and sensor division sales are expected to rise.
- Altera (ALTR -3.3%) stated its "telecom and wireless business, and particularly our wireless business globally looks to be quite weak in [Q2], while the rest for our business will in aggregate be flat to slightly up." Regarding its Q1 miss, the company notes "Industrial, test, compute and storage, and to a lesser extent military, fell short of our forecast" (share loss to Xilinx?).
- Maxim reports seeing "broad-based softness in communications infrastructure demand" and soft industrial bookings to go with healthier mobile/auto demand. The Galaxy S6 appears to be giving a lift to Maxim's mobile sales.
- Chip ETFs: SMH, XSD, PSI, SOXL, USD, SOXS, SSG
Wed, Apr. 22, 5:57 PM
- In addition to missing Q1 estimates, Texas Instruments (NASDAQ:TXN) is guiding for Q2 revenue of $3.12B-$3.38B and EPS of $0.60-$0.70, below a consensus of $3.43B and $0.73.
- TI has fallen to $54.86 AH. Peers are also off: NXP (NASDAQ:NXPI) is down 2.6% to $100.00, ON Semi (NASDAQ:ONNN) is down 2.8% to $12.02, Linear (NASDAQ:LLTC) is down 2.5% to $46.40, Microchip (NASDAQ:MCHP) is down 1.6% to $48.49, and Maxim (NASDAQ:MXIM) is down 1.6% to $34.45. In addition to TI, Xilinx has provided soft top-line figures. Qualcomm has provided light guidance to go with an FQ2 beat, but hasn't blamed broader demand trends.
- Aside from a strong dollar (hurting many tech companies), TI blames "continuing weakness in our communications equipment and personal electronics markets, particularly for wireless infrastructure equipment and PCs."
- Q1 segment performance: Analog revenue +11% Y/Y to $2.04B; op. profit +45% to $721M. Embedded processing +2% to $672M; op. profit +137% to $123M. Other revenue (calculators, DLPs, royalties) -10% to $443M; op. profit -19% to $114M.
- With TI aggressively trying to keep costs down (have they taken the strategy too far?), GAAP R&D spend fell by $28M Y/Y to $338M, and SG&A spend by $40M to $439M. Gross margin rose nearly 4% Y/Y to 57.7%. $670M was spent on buybacks. Only $123M (4% of revenue) was spent on capex.
- TI's Q1 results, PR
Thu, Feb. 5, 1:06 PM
- In addition to beating Q4 estimates, NXP (NXPI -1.8%) is guiding for Q1 revenue of $1.445B-$1.505B and EPS of $1.25-$1.35, mostly above a consensus of $1.45B and $1.21. With shares having risen 24% since the Oct. 22 Q3 beat (thanks in part to hopes for big Apple-related sales), expectations were high.
- NFC chip sales to Apple and others drove an 81% increase in Secure Connected Devices sales to $349M. M8 motion co-processor sales to Apple helped drive a 40% increase in Secure Interfaces & Power chip sales to $305M. Auto chip sales rose 6% to $292M, and standard products (analog/power management chips) 13% to $331M. Secure Identification (inc. RFID and EMV chips) were a weak spot, falling 18% to $223M.
- Gross margin was 46.6%, down from 47.9% in Q3 and 49.2% a year ago - Apple is known for driving a hard bargain - and slightly below guidance of 47%-48%. However, GM is expected to rise to 48% in Q1.
- In spite of 19% revenue growth, operating expenses grew only 1% Y/Y to $396M, and were down 3% Q/Q. $180M was spent on buybacks. NXP ended Q4 with $1.2B in cash, and $4B in debt.
- Q4 results, PR
Wed, Feb. 4, 10:58 PM| 5 Comments
Tue, Feb. 3, 5:35 PM
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Fri, Jan. 16, 10:36 AM| Comment!
Oct. 31, 2014, 11:31 AM
- Three weeks after providing a calendar Q3 warning that triggered a massive chip stock rout, Microchip (MCHP +7.3%) has provided Q4 guidance that's in-line with lowered estimates. The microcontroller vendor, which has often seen trends emerge ahead of peers, also said it saw most of its inventory correction in Q3, and expects Q4 sales to be just "slightly below typical seasonal levels."
- Chip stocks are up strongly (SOXX +4%) on a day the Nasdaq is up 1.4%. Since Microchip's warning, a slew of analog chipmakers and microcontroller firms (e.g. Atmel, Freescale, STMicro, Intersil, Linear) have offered light Q4 guidance, and other firms have reported seeing high-end Android weakness (e.g. Synaptics, Cirrus Logic, Amkor).
- On the other hand, several mobile chipmakers (Skyworks, RF Micro, TriQuint, Silicon Motion), some of which have decent iPhone exposure, have provided strong results and/or guidance. Other chipmakers, such as Broadcom, Texas Instruments, and Xilinx, have rallied after delivering in-line guidance.
- Susquehanna's Chris Caso: "By now, we think it’s clear that the weakness MCHP saw in September is not company specific ... The question now is if the full extent of the weakness has been dialed into estimates. If it has, then this would be among the shortest and mildest downturns in many years."
- Notable gainers: SNDK +3.9%. MU +4.1%. AMAT +3.9%. TXN +4.7%. NXPI +3.9%. NVDA +3.5%. MXIM +4.7%. LLTC +5.1%. FCS +9.6%. FSL +8.8%. ADI +6.5%. TQNT +6.8%. RFMD +6.5%. ATML +5.9%. AVGO +5.1%. MRVL +4.7%. AMCC +8.9%. BRCM +3.6%. TSM +4.4%. ARMH +3.3%.
- Intel (INTC +3.5%) has recovered most of the losses it saw yesterday due to Intesil's (ISIL +3.3%) results and guidance, and related comments about a PC chip inventory correction.
- Chip ETFs: SMH, XSD, PSI, SOXL, USD, SOXS, SSG
Oct. 23, 2014, 12:40 PM
- NXP (NASDAQ:NXPI) expects Q4 revenue of $1.485B-$1.545B and EPS of $1.26-$1.36. Consensus is at $1.49B and $1.28.
- The chipmaker says its outlook "points to a slightly better than seasonal trend as company specific product cycles continue to ramp against a backdrop of a slightly less optimistic overall semiconductor market." Shares were clobbered on Oct. 10 thanks to Microchip's warning, but had since recovered a majority of their losses.
- With the help of M8 motion co-processor shipments to Apple, Q3 Secure Interfaces & Power sales rose 40% Y/Y to $298M. NFC chip sales to Apple contributed to a 60% increase in Secure Connected Devices sales to $301M. Automotive sales +10% to $288M; Secure Identification (includes RFID and EMV chips) -3% to $252M. Standard Products +14% to $333M.
- $574M was spent on buybacks, providing a boost to EPS. Gross margin was 47.9% vs. 48.6% in Q2 and 46.8% a year ago; Q4 GM guidance is at 47%-48%. Opex rose 1% Y/Y to $407M.
- Q3 results, PR
Oct. 23, 2014, 12:56 AM| 7 Comments
Oct. 21, 2014, 5:35 PM
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Jul. 24, 2014, 12:28 AM| Comment!
Jul. 22, 2014, 5:35 PM
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Apr. 24, 2014, 9:22 AM
- NXP (NXPI) expects Q2 revenue of $1.30B-$1.35B and EPS of $1.00-$1.10, largely favorable to a consensus of $1.30B and $1.02. Shares +2.5% premarket. (Q1 results, PR)
- Yandex (YNDX) expects 25%-30% 2014 ruble-based revenue growth vs. a consensus for 29% growth. Shares -0.9% premarket. (Q1 results, PR)
- Sonus (SONS) expects Q2 revenue of $73M-$75M ($33M-$35M from SBCs and diameter signaling) and EPS of $0.01 vs. a consensus of $74M and $0.01. Full-year guidance is for revenue of $300M ($168M from SBCs and diameter signaling) and EPS of $0.05 vs. a consensus of $301.8M and $0.05. Shares +2.9% premarket. (Q1 results, PR)
- Logitech (LOGI) is reiterating FY15 (ends March '15) guidance for revenue of $2.16B and op. income of $145M. The revenue forecast is below a $2.17B consensus. Shares -2.9% premarket. (FQ4 results, PR)
NXPI vs. ETF Alternatives
NXP Semiconductors NV is a semiconductor company providing High Performance Mixed Signal & Standard Product solutions. Its solutions are used for automotive, identification, wireless infrastructure, industrial, mobile, consumer & computing applications.
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