NXP Semiconductors N.V. NXPI reported first-quarter 2021 non-GAAP earnings of $2.31 per share, which outpaced the Zacks Consensus Estimate by 4.5%. Further, the figure increased 13.2% year over year but declined 13.8% sequentially.Revenues of $2.57 billion surpassed the Zacks Consensus Estimate of $2.56 billion. The figure was up 27% from the year-ago period and 2% on a sequential basis.Top-line growth was driven by strong performance across all end-markets in the reported quarter.End-Markets in DetailAutomotive generated $1.23 billion in revenues (contributing 48% to the total revenues), which reflects a year-over-year increase of 24%.Revenues from Industrial & IoT were $571 million (22% of total revenues), which rose 52% from the prior-year quarter.Revenues from Mobile were $346 million (14% of total revenues), up 40% from the year-ago level.Communication Infrastructure & Others generated $421 million in revenues (which contributed 16% to the total revenues), up 4% year over year.NXP Semiconductors N.V. Price, Consensus and EPS Surprise NXP Semiconductors N.V. price-consensus-eps-surprise-chart | NXP Semiconductors N.V. QuoteOperating ResultsNon-GAAP gross margin was 54.2%, which expanded 240 basis points (bps) from the year-ago quarter. A favorable product mix contributed well.Operating expenses were $863 million, down 16.9% year over year. As a percentage of revenues, the figure significantly contracted to 33.6% from 51.4% in the prior-year quarter.Non-GAAP operating margin of 30.9% for the reported quarter expanded 610 bps from the prior-year period.Balance Sheet & Cash FlowAs of Apr 4, 2021, cash and cash equivalent balance were $1.8 billion compared with $2.3 billion as of Dec 31, 2021.Inventories were $1.1 billion at the end of the first quarter, up from $1 billion at the end ofthe fourth quarter. Accounts receivables increased to $833 million from $765 million in the previous quarter.Long-term debt was $7.611 billion at the end of the quarter under review compared to $7.609 billion at the end of the last reported quarter.Further, the company generated cash flow of $732 million in the first quarter, down from $1.03 billion in the fourth quarter.Furthermore, it generated a free cash flow of $582 million compared with $926 million in the prior quarter.In the first quarter, NXP returned $1 billion to shareholders primarily through previously announced dividend payments.2Q21 GuidanceFor second-quarter 2021, NXP expects revenues of $2.50-$2.64 billion. The Zacks Consensus Estimate is pegged at $2.55 billion, which is lower than the mid-point of NXP Semiconductors’ range.Further, the company expects non-GAAP gross margin between 55.2% and 55.8%. Furthermore, non-GAAP operating margin is anticipated between 30.7% and 31.9%.Zacks Rank & Stocks to ConsiderCurrently, NXP Semiconductors carries a Zacks Rank #3 (Hold).Some better-ranked stocks in the broader technology sector are KLA Corporation KLAC, AMETEK, Inc. AME and Vishay Intertechnology, Inc. VSH. All three companies currently carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.The long-term earnings growth rates of KLA, AMETEK and Vishay are pegged at 14.03%, 8.78% and 20.26%, respectively.Time to Invest in Legal MarijuanaIf you’re looking for big gains, there couldn’t be a better time to get in on a young industry primed to skyrocket from $17.7 billion back in 2019 to an expected $73.6 billion by 2027.After a clean sweep of 6 election referendums in 5 states, pot is now legal in 36 states plus D.C. Federal legalization is expected soon and that could be a still greater bonanza for investors. Even before the latest wave of legalization, Zacks Investment Research has recommended pot stocks that have shot up as high as +285.9%.You’re invited to check out Zacks’ Marijuana Moneymakers: An Investor’s Guide. It features a timely Watch List of pot stocks and ETFs with exceptional growth potential.Today, Download Marijuana Moneymakers FREE >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report KLA Corporation (KLAC): Free Stock Analysis Report AMETEK, Inc. (AME): Free Stock Analysis Report NXP Semiconductors N.V. (NXPI): Free Stock Analysis Report Vishay Intertechnology, Inc. (VSH): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research