NXP Semiconductors late Monday beat analyst estimates for the second quarter on continued strong automotive chip sales. NXPI stock rose in extended trading.
The Netherlands-based chipmaker earned an adjusted $3.43 a share on sales of $3.3 billion in the June-ended quarter. Analysts polled by FactSet had predicted NXP earnings of $3.28 a share on sales of $3.21 billion. However, on a year-over-year basis, NXP earnings declined 3% while sales dipped a fraction.
For the current quarter, NXP predicted adjusted earnings of $3.60 a share on sales of $3.4 billion. That's based on the midpoint of its outlook. Wall Street called for third-quarter earnings of $3.44 a share on sales of $3.31 billion. In the same quarter last year, NXP earned $3.76 a share on sales of $3.45 billion.
"Our first-half results and guidance for the third quarter underpin our confidence that NXP is successfully navigating through the cyclical downturn in our consumer-exposed businesses," Chief Executive Kurt Sievers said in a news release. "At the same time, we see continued strength in our automotive, core-industrial and communications infrastructure businesses."
NXPI Stock Is A Recent Breakout
NXP makes chips for automotive, industrial, Internet of Things, mobile, and communication infrastructure markets. The company's largest segment, automotive, saw sales rise 9% year over year to $1.87 billion in the second quarter.
In after-hours trading on the stock market today, NXPI stock climbed 0.9% to 212.79. During the regular session Monday, NXPI stock retreated 1.1% to close at 210.88.
On June 13, shares broke out of a cup base at a buy point of 197.71, according to IBD MarketSmith charts.
NXP Semiconductors ranks fourth out of 32 stocks in IBD's semiconductor manufacturing industry group, according to IBD Stock Checkup. It has an IBD Composite Rating of 92 out of 99.
Further, NXPI stock is on the IBD Tech Leaders list.
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