NXP beats Q3 estimates but soft Q4 operating-income guide sends shares down after hours
What happened
NXP reported Q3 net income attributable to shareholders of $884 million, up from $631 million a year earlier, or $3.48 a share versus $2.48. Adjusted EPS was $4.20, ahead of the $4.12 FactSet consensus, and revenue rose 19% to $3.79 billion, ahead of the $3.76 billion expected, boosted by 13% automotive revenue growth and 39% industrial growth. But Q4 guidance disappointed at the margin: revenue of $3.75-3.95 billion (midpoint $3.85 billion versus $3.86 billion consensus) and adjusted operating income of $1.374-1.442 billion versus a $1.44 billion FactSet consensus, with non-GAAP EPS guided to $4.14-4.58. The board also authorized a new $5 billion buyback, on top of $1.3 billion remaining under the prior authorization. Shares fell 7.3% after hours to $235, per the Dow Jones/Morningstar wire.
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Start your free 14-day trialWho’s affected
- NXPI (direct; Q3 beat overshadowed by Q4 guide, shares -7.3% after hours to $235)
- Auto and industrial semiconductor peers (same end-market demand and channel-inventory questions)
- Auto suppliers and software-defined-vehicle names (NXP's automotive growth is a demand signal for that chain)
- Data-center infrastructure names (NXP cited momentum there, but the guide still disappointed)