Research Desk Line-up: Qorvo Post Earnings Coverage

LONDON, UK / ACCESSWIRE / November 13, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on NXP Semiconductors N.V. (NASDAQ: NXPI) ("NXP"), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=NXPI, following the Company's posting of its third quarter fiscal 2017 operating results on October 25, 2017. The chipmaker exceeded revenue estimates. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:

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Get more of our free earnings reports coverage from other constituents of the Semiconductor - Broad Line industry. Pro-TD has currently selected Qorvo, Inc. (NASDAQ: QRVO) for due-diligence and potential coverage as the Company announced on November 02, 2017, its financial results for Q2 FY18 which ended on September 30, 2017. Register for a free membership today, and be among the early birds that get access to our report on Qorvo when we publish it.

At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on NXPI; also brushing on QRVO. With the links below you can directly download the report of your stock of interest free of charge at:

http://protraderdaily.com/optin/?symbol=NXPI

http://protraderdaily.com/optin/?symbol=QRVO

Earnings Reviewed

For the third quarter ended October 01, 2017, NXP delivered revenue of $2.39 billion, down 3% on a y-o-y basis compared to revenue of $2.47 billion in Q3 2016, with the annual period comparison impacted by the successful divestment of the Standard Products business during Q1 2017. The Company's revenue numbers topped analysts' expectations of $2.29 billion.

During Q3 2017, NXP's GAAP operating margin was 6.8%, reflecting a 20-basis point decline from the operating margin of 7.0% in Q3 2016, due to the divestment of its Standard Products business. The Company's non-GAAP operating margin was 30.8%, representing a 280-basis point improvement compared to the year-ago same period.

NXP reported net income of $108 million, or $0.31 per diluted share, compared to a net income of $91 million, or $0.26 per diluted share, in Q3 2016.

Segment Results

During Q3 2017, NXP's High-Performance Mixed Signal (HPMS) segment's revenue jumped 9% to $2.29 billion compared to $2.10 billion in Q3 2016. The Company's Automotive Group's revenue surged 11% to $948 million for the reported quarter versus revenue of $853 million in the prior year's comparable quarter.

For Q3 2017, NXP's Secure Connected Devices Group's revenue surged 20% to $713 million on a y-o-y basis, driven by demand for both mobile transaction and general purpose MCU products. For the Company's Secure Interface and Infrastructure Group, the revenue was $488 million for the reported quarter, up 3% on a y-o-y basis, and driven by the Interface group, but offset primarily by declines within the legacy product portfolio of the Digital Networking Group. Lastly, for NXP's Secure Identification Solutions Group, revenue totaled $139 million, down 22% versus the year-ago corresponding period.

Pending Acquisition

On October 27, 2016, Qualcomm, Inc. (NASDAQ: QCOM), and NXP announced a definitive agreement, unanimously approved by the Boards of Directors of both Companies, under which Qualcomm will acquire NXP. Under the terms of the definitive agreement, a subsidiary of Qualcomm will commence a tender offer to acquire all the issued and outstanding shares of NXP for $110.00 per share in cash. The tender offer commenced on November 18, 2016.

Cash Matters

At the end of Q3 2017, NXP's total gross debt was $6.56 billion, essentially flat on a sequential basis. The Company's cash was $3.06 billion at the end of the reported quarter, reflecting an increase from the $2.64 billion in Q2 2017, and resulting in a net debt of $3.49 billion, a decline from the $3.91 billion in the previous quarter.

NXP's trailing twelve months adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) was $3.12 billion, an increase from the $3.07 billion reported in Q2 2017. The Company's financial leverage, defined as net debt divided by trailing twelve months adjusted EBITDA, was 1.12x; an improvement from 1.27x in the previous quarter.

For Q3 2017, NXP generated cash flow from operations of $643 million; an increase from the $441 million in Q2 2017. The Company's net capital expenditure on property, plant, and equipment was $161 million; an increase from the $96 million in the previous quarter. NXP's non-GAAP free cash flow totaled $482 million for Q3 2017; an increase from the $345 million in Q2 2017.

NXP repurchased 19.5 thousand shares for a total cost of $2.1 million in Q3 2017. Due to the pending acquisition by Qualcomm, NXP has suspended its open market share repurchases. The shares were currently only repurchased in relation to employee equity award transactions.

In Q3 2017, NXP's days of inventory was 99 days, reflecting a decline of 4 days sequentially. The Company's days payable was 86 days, a decline of 7 days on a q-o-q basis. NXP's days sales totaled 35 days, down 3 days on a sequential basis, while the cash conversion cycle was 48 days, flat on a sequential basis.

Guidance and Conference Call

NXP did not hold an earnings call nor provide forward guidance for Q4 2017, due to the pending acquisition of NXP by Qualcomm.

Stock Performance

On Friday, November 10, 2017, the stock closed the trading session at $116.05, slightly climbing 0.64% from its previous closing price of $115.31. A total volume of 2.39 million shares have exchanged hands, which was higher than the 3-month average volume of 2.23 million shares. NXP Semiconductors' stock price surged 3.14% in the last three months, 8.42% in the past six months, and 20.15% in the previous twelve months. Furthermore, since the start of the year, shares of the Company have rallied 18.41%. The stock is trading at a PE ratio of 20.55. At Friday's closing price, the stock's net capitalization stands at $39.90 billion.

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