NXP Semiconductors shares volatile as earnings and outlook beat Street expectations
Shares of NXP Semiconductors NV were volatile in Monday’s extended session after the chipmaker’s quarterly results and revenue forecast beat Wall Street expectations.
the shares, which initially jumped 5% after hours, were last down 0.4% after rising 8.4% in the regular session to close at $205.44.
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,
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,
is up 21%, the S&P 500 SPX index,
is up 22%, and the tech-heavy Nasdaq Composite Index COMP,
increased by 9%.