NXP Semiconductors reported record full-year revenue

NXP Semiconductors NV (NASDAQ: NXPI) on Monday said its Q4 profit and sales topped Wall Street estimates on strong customer demand. Shares jumped nearly 3.0% in extended trading.

What the Q4 earnings report tells us

NXP said its net income printed at $602 million that translates to $2.24 per share. This compares to last year’s $309 million or $1.08 per share. The Dutch multinational generated $3.04 billion in revenue that represents a 21% annualised growth.

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According to FactSet, experts had forecast $2.08 of EPS on $3.0 billion in revenue. In the earnings press release, CEO Kurt Sievers said:

2021 was an excellent year. We experienced significant design with traction across the entire portfolio, especially within the areas of our strategic growth drivers. We continue to see growing customer demand, outstripping supply, as inventory across all end markets remains lean.

Guidance for the fiscal first quarter

For Q1, NXP forecasts $3.03 billion to $3.18 billion in revenue versus the FactSet consensus for $2.96 billion. In November, NXP partnered with Ford on connected cars.

The semiconductor manufacturer noted a 30% YoY increase in Q4 auto-chip sales that beat a 28% growth that analysts had expected. Revenue for the full year jumped 28% to a record $11.06 billion. NXP valued its net CAPEX investments at $766 million, resulting in $2.31 billion of adjusted free cash flow.

The strong quarterly results also saw NXP raise its quarterly cash dividend by 50% to 84 cents a share and launch a new $2.0 billion share buyback programme. Last month, Cowen’s Matthew Ramsey raised his price target on NXP to $265 a share, which represents a more than 30% upside from here.