NXP Semiconductors NV (NASDAQ:NXPI) shares are falling after the company reported third-quarter financial results and updated guidance Tuesday after market close.
Here are the highlights.
• NXP Semiconductors shares are sliding. What’s weighing on NXPI shares?
NXP Q3 Financials
NXP reported third-quarter revenue of $3.786 billion, up 19% year-over-year. The revenue total beat a Street consensus estimate of $3.760 billion, according to data from Benzinga Pro.
The company reported adjusted earnings per share of $4.20, which beat a Street consensus estimate of $4.09.
“Our performance was driven by accelerating contributions from our company-specific growth drivers in automotive and industrial as well as continued momentum in data center infrastructure,” NXP CEO Rafael Sotomayor said.
The company also announced a new $5 billion share buyback authorization. The new buyback is in addition to the $1.3 billion remaining under a previous share repurchase plan.
What’s Next for NXP Semiconductors?
The company provided guidance for the fourth quarter.
NXP expects fourth-quarter revenue to be in a range of $3.75 billion to $3.95 billion. This would represent year-over-year growth of 12% to 18%, lower than the growth in the third quarter.
This is likely contributing to shares trading lower Tuesday.
The company is forecasting fourth-quarter earnings per share to be in a range of $4.14 to $4.58.
“We see significant opportunities as software-defined vehicles drive increasing demand for our next-generation solutions, while data center infrastructure and Trusted Physical AI applications create new vectors for long-term growth,” Sotomayor said.
NXPI Stock Price Action
NXP stock is down 8.09% to $233 in after-hours trading versus a 52-week trading range of $183 to $339.95.
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