NXP Semiconductors Posts Mixed Q4 Results; Hikes Dividend

Semiconductor manufacturing company NXP Semiconductors N.V. (NASDAQ: NXPI) recently reported mixed results for the quarter ended December 31, 2021, as revenues beat but earnings missed estimates.

Following the earnings, shares of the company rose marginally to close at $206.45 in Monday’s extended trading session.

Revenue & Earnings

NXP reported quarterly revenues of $3.04 billion, up 21.2% from the previous year’s quarter. Further, the figure topped the consensus estimate of $3 billion.

The company’s earnings per share (EPS) for the quarter stood at $2.24, which denotes a massive jump of 107.4% from the prior year. However, the figure failed to surpass the consensus estimate of $2.99 per share.

At the end of the quarter, the company’s gross margin improved to 57.3% from 52.9% in the previous year.

The operating margin also rose to 34.9% from 30.5% a year ago.

Dividend & Share Buyback

Meanwhile, the company has approved a 50% hike in its quarterly dividend to $0.845 per share. The dividend will be paid in cash on April 6, 2022, to shareholders of record as of March 15, 2022.

NXP has also approved a new share repurchase program of $2 billion.

Guidance

For the first quarter of 2022, the company expects revenues to be in the range of $3.025 billion to $3.175 billion against the consensus estimate of $2.96 billion.

Stock Rating

Wall Street’s Top Analysts have awarded NXP a Moderate Buy consensus rating based on 11 Buys, 6 Holds and 1 Sell. The average NXP price target of $242.83 implies upside potential of 18.2% from current levels. Shares have gained 19.8% over the past year.

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