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

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%.