NXPI – Market expectations are for Uniform ROA to improve, but management may have concerns about growth, build rates, and expenses

• NXP Semiconductors N.V. (NXPI:USA) currently trades above recent averages relative to UAFRS-based (Uniform) earnings, with a 17.2x Uniform P/E. At these levels, the market has bullish expectations for the firm, but management may have concerns about revenue growth, build rate declines, and operating expenses
• Specifically, management may lack confidence in their ability to sustain industrial and IoT revenue beats, ramp business growth in the second half of the year, and benefit from increased electric drivetrain penetration. In addition, they may have concerns about build rate declines, the impact of the Austin factory shutdown on their business, and increases in operating expenses. Finally, they may be concerned about increases in their distribution channel’s days of inventory, and they may lack confidence in their ability to ramp customer deliveries and distribute excess free cash flow to shareholders