NXP Semiconductors (NXPI) late Monday beat estimates for the fourth quarter due to a surge in automotive chip gross sales. However it set its outlook decrease for the present interval. NXPI inventory slid in prolonged buying and selling.
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The Dutch chipmaker earned an adjusted $3.73 a share on gross sales of $3.31 billion within the December quarter. Analysts polled by FactSet had anticipated NXP to earn $3.64 a share on gross sales of $3.3 billion. On a year-over-year foundation, NXP earnings rose 17% whereas gross sales climbed 9%.
Within the fourth quarter, NXP’s automotive chip gross sales jumped 17% to just about $1.81 billion. Nevertheless, industrial chip gross sales dropped 8% to $605 million. In the meantime, cell chip gross sales elevated 9% and communications infrastructure chips superior 8% within the quarter.
For the present quarter, NXP forecasts adjusted earnings of $3.01 a share on gross sales of $3 billion. That is based mostly on the midpoint of its outlook. Wall Road had predicted earnings of $3.14 a share on gross sales of $3.17 billion within the first quarter.
NXPI Inventory Drops On Weak Outlook
In after-hours buying and selling on the inventory market at this time, NXPI inventory dropped 3.6% to 172.99. In the course of the common session Monday, NXPI inventory fell 1.1% to shut at 179.48.
“From an end-market perspective, our automotive enterprise carried out very effectively, whereas in our client IoT (Web of Issues) and cell companies we skilled a softening demand surroundings by the second half of 2022,” Chief Government Kurt Sievers stated in a information launch.
In different information, NXP introduced a 20% improve to its quarterly money dividend to $1.014 per strange share.
NXPI inventory ranks No. 10 out of 31 shares in IBD’s semiconductor manufacturing trade group, in line with IBD Inventory Checkup. It has an IBD Composite Ranking of 91 out of 99.
IBD’s Composite Ranking combines 5 separate proprietary rankings into one easy-to-use score. The most effective progress shares have a Composite Ranking of 90 or higher.
Observe Patrick Seitz on Twitter at @IBD_PSeitz for extra tales on client know-how, software program and semiconductor shares.
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