NXP Semiconductors N.V. (NXPI) posted solid fourth-quarter results on Monday, but the market wasn't impressed. Shares slipped 4.80% to $219.99 in extended trading, proving once again that beating expectations isn't always enough if your forward guidance leaves something to be desired.
The Numbers: NXP delivered earnings of $3.35 per share, edging past the Street's $3.29 estimate. Revenue hit $3.34 billion, comfortably above the $3.31 billion consensus and representing a healthy jump from the $3.11 billion reported in the same quarter last year.
The company's non-GAAP gross margin came in at 57.4% with an operating margin of 34.6% for the quarter—both respectable figures that show the chipmaker is maintaining decent profitability.
On the corporate housekeeping front, NXP wrapped up the sale of its MEMS sensors business line for $900 million in cash, with the possibility of an additional $50 million if certain technical milestones are hit.
Looking Ahead: Here's where things get interesting. The company expects first-quarter adjusted EPS between $2.77 and $3.17, with the midpoint sitting below the $2.90 analyst estimate. Revenue is projected in a range of $3.05 billion to $3.25 billion. That cautious outlook likely explains why investors hit the sell button despite the solid Q4 performance.
