NXP Semiconductors 2Q Profit, Revenue Climb on Growth Across End Markets

Dow Jones
Jul 29
 

NXP Semiconductors logged higher profit in its latest quarter as sales climbed on growth across each of its end markets.

The Dutch chip maker's results came in above Wall Street's expectations, but the stock fell 5.8% to $243.98 in after-hours trading on Tuesday. At market close, shares were up 19% year to date.

NXP posted a second-quarter profit of $767 million, or $3.02 a share, compared with $445 million, or $1.75 a share, a year earlier.

Adjusted earnings per share were $3.61, compared with estimates of $3.52 a share, according to analysts polled by FactSet.

Revenue climbed 19% year over year to $3.5 billion, compared with analyst estimates of $3.47 billion.

The results were driven by growth across all end markets and all regions, Chief Executive Rafael Sotomayor said.

Sotomayor pointed to particular strength with software-defined vehicle and physical AI customers, and said that NXP's business with data centers is emerging as an additional growth driver.

"AI is moving from the cloud into the physical world -- into vehicles, factories, and robots -- and it lands directly in the markets where NXP has leadership positions," Sotomayor said.

For the current third quarter, NXP projects adjusted earnings per share of about $4.11 at the midpoint of its range, and revenue up about 18% to roughly $3.75 billion. Analysts expect adjusted earnings of $4.03 a share and revenue of $3.71 billion.

 
 

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