NXP Semiconductors Shares Rise After Narrow Q4 Beat, Guides Q1 Below Consensus

NXP Semiconductors NV (NXPI) shares jumped 6% in extended trading Monday after the Dutch-based chipmaker posted quarterly earnings and a current-quarter outlook that came in ahead of estimates. CEO Kurt Sievers said that the chipmaker remains cautiously optimistic about how it’s performing in an industry downturn and a challenging demand environment. Sales in the company’s industrial and IOT segment and mobile device chips unit helped offset weakness in its communications infrastructure and automotive chip businesses in the quarter.

NXP Semiconductors N.V. (NXPI) posted quarterly earnings above analysts’ expectations and issued a better-than-expected bottom-line outlook for the current quarter amid a challenging environment, sending the chipmaker’s shares 6% higher in Monday’s extended-hours trading session. For the first three months of the year, the Dutch-based company reported adjusted earnings of $3.24 per share, ahead of analysts’ estimates of $3.19 a share. Revenue in the period of $3.13 billion inched higher from a year earlier and was in line with the consensus view.

Sales were mixed in the quarter, with growth in the company’s industrial and internet of things (IOT) segment and mobile device chips unit helping to offset weakness in its communications infrastructure and automotive chip businesses. Looking ahead, the company guided a current-quarter adjusted profit of $3.20 per share on $3.13 billion in revenue. The company’s top-line forecasts roughly matched expectations, while its bottom-line projection edged ahead of the $3.14 a share consensus.

“Our first-quarter results, guidance for the second quarter, and our early views into the second half of the year underpin a cautious optimism that NXP is successfully navigating through this industry-wide cyclical downturn,” NXP CEO Kurt Sievers said in the company’s earning’s statement.