NXP Semiconductors Q1 Results Top Estimates, Guides Q2 In Line

(RTTNews) - Mixed signal solutions provider NXP Semiconductors N.V. (NXPI) reported Wednesday a profit for the first quarter compared to a loss last year, reflecting improved margins and double-digit revenue growth.

Both adjusted earnings per share and quarterly revenues topped analysts' expectations. The company also provided earnings and revenue guidance for the second quarter, in line with Street view.

"Our results for the first quarter of 2014 were very good, above the mid-point of our guidance, as NXP delivered Product revenue of $1,207 million, a 14 percent increase from the prior year period and a 4 percent sequential decline," CEO Richard Clemmer said in a statement.

The Eindhoven, Netherlands-based company reported net income of $110 million or $0.43 per share, compared to a net loss of $14 million or $0.06 per share in the prior-year quarter.

Excluding items, adjusted net income for the quarter was $249 million or $0.98 per share, compared to $186 million or $0.72 per share in the year-ago quarter.

On average, 17 analysts polled by Thomson Reuters expected the company to report earnings of $0.95 per share for the quarter. Analysts' estimates typically exclude one-time items.

Total revenues for the quarter grew 15 percent to $1.25 billion from $1.09 billion in the same quarter last year, and topped sixteen Wall Street analysts' consensus estimate of $1.23 billion.

Product revenue increased 14 percent to $1.21 billion from last year, as well as corporate and other revenues grew 30 percent to $39 million from the year ago.

Operating margin for the quarter expanded 410 basis points to 14.7 percent from a year ago, and gross profit margin improved 250 basis points to 47.0 percent from last year.

Looking ahead to the second quarter, the company expects adjusted earnings of $1.00 to $1.10 per share, on projected revenues between $1.30 billion to $1.35 billion. Analysts currently estimate earnings of $1.02 per share on revenues of $1.30 billion for the quarter.

"In summary the first quarter results were better than anticipated, and we believe NXP is ideally positioned to continue to deliver solid revenue growth, strong earnings and robust free cash flow in future periods," Clemmer added.

NXPI closed Wednesday's regular trading session at $60.52, down $0.10 or 0.16% on a volume of 3.16 million shares.