Shares of NXP Semiconductors (NXPI) are up 2% after the microchip company reported fourth-quarter 2024 financial results that narrowly beat Wall Street’s consensus forecasts.
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The Dutch company, which reports its results in U.S. dollars, announced earnings per share of $3.18, which topped the $3.16 consensus expectation among analysts who track the company’s progress. Revenue in the final three months of the year came in at $3.11 billion, which was slightly ahead of the $3.10 billion in sales that was anticipated.
NXP Semiconductors quarterly sales were down 9% from a year earlier. At the same time, the chipmaker reported that its full-year 2024 revenue declined 5% to $12.61 billion. NXP Semiconductors also reported a gross margin of 57.5% for the quarter and operating cash flow of $391 million. The company returned $713 million to shareholders through dividends and share repurchases in Q4 2024.
NXPI Stock at 52-Week Low
NXP Semiconductors financial results were announced on the same day that the company’s stock hit a 52-week low of $201.90 per share. NXPI stock has been slumping amid growing demand concerns and as investors re-evaluate the chip sector following the launch last week of Chinese artificial intelligence (AI) app DeepSeek.
In the past year, NXPI stock has declined 6%. Along with its Q4 financial results, the company said that it has successfully concluded the acquisitions of Aviva Links for $242.5 million and TT Tech Auto for $625 million. Each acquisition is aimed at enhancing NXP Semiconductors chip sales to the automotive industry.
Is NXPI Stock a Buy?
NXP Semiconductors stock has a consensus Moderate Buy rating among 22 Wall Street analysts. That rating is based on 16 Buy, five Hold, and one Sell recommendations issued in the last three months. The average NXPI price target of $267.60 implies 30.71% upside from current levels.
