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Earnings Results: NXP Semiconductors’ stock volatile as revenue, outlook exceed Street expectations


NXP Semiconductors NV shares were volatile in the extended session Monday after the chip maker’s quarterly revenue results and forecast exceeded Wall Street expectations.

NXP NXPI, +8.44% shares, which had initially popped 5% after hours, were last down 0.4%, following an 8.4% surge in the regular session to close at $205.44.

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

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

Analysts surveyed by FactSet had forecast $3.01 a share on revenue of $3 billion, while forecasting a 28% rise in auto-chip 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, outstripping supply, as inventory across all end markets remains very lean,” said Kurt Sievers, NXP president and chief executive, in a statement. “Taken together, this underpins our continued confidence of robust growth throughout 2022.”

Earnings preview: Chips may be sold out for 2022 thanks to shortage, but investors are worried about the end of the party

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

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

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

Bears beware. Past corrections for the S&P 500 are only 15% on average, outside of recessions

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