NXP Semiconductors shares volatile as earnings and outlook beat Street expectations

Eindhoven, Netherlands-based NXP reported net income of $602 million, or $2.24 per share, in the fourth quarter, compared with $309 million, or $1.08 per share, one year ago. NXP did not provide an adjusted earnings per share figure in its statement.

Revenue rose to $3.04 billion from $2.51 billion in the year-ago quarter as automotive chip sales jumped 30% to $1.55 billion from a year ago. year.

Analysts polled by FactSet had forecast $3.01 a share on revenue of $3 billion, while forecasting a 28% increase in autochip sales to $1.53 billion. NXP had forecast total fourth-quarter revenue of $2.93 billion to $3.08 billion last quarter.

“We continue to see growing customer demand, outpacing supply, as inventory in all end markets remains very thin,” said Kurt Sievers, president and CEO of NXP, in a statement. “Taken together, this reinforces our continued confidence in robust growth through 2022.”

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NXP not only has a large footprint in supplying chips to the beleaguered automotive industry, but auto sales also count as its largest business segment at 51% of revenue. Texas Instruments Inc. TXN,
+1.24%,
which said automotive chip sales accounted for 21% of its revenue and was the only chip company last week to forecast a good outlook for the current quarter, stressed that it was placing “additional strategic focus on industrial and automotive customers”.

NXP forecasts first-quarter revenue of $3.03 billion to $3.18 billion, while analysts expect $2.96 billion.

NXP shares are up 28% in the past 12 months, while the PHLX Semiconductor Index SOX,
+5.44%
is up 21%, the S&P 500 SPX index,
+1.89%
is up 22%, and the tech-heavy Nasdaq Composite Index COMP,
+3.41%
increased by 9%.