Earnings Results: NXP Semiconductor stock falls as outlook comes up short of expectations
NXP Semiconductors NV shares dropped in the extended session Monday after the chip maker’s quarterly forecast fell short of Wall Street expectations.
forecast earnings of $2.82 to $3.22 a share on revenue of $2.9 billion to $3.1 billion for the first quarter, while analysts surveyed by FactSet expected $3.14 a share on revenue of $3.17 billion. Wall Street has grown nervous in recent months about the semiconductor sector as giants like Intel Corp.
have shown demand struggles and swelling inventories, but auto-focused chip makers like NXP have largely avoided those doubts.
“We have adopted a vigilant operational stance, aiming to improve service to those customers who continue to experience material shortages while managing the distribution-channel inventory levels well below our long-term targets,” NXP Chief Executive Kurt Sievers said in a statement.
Shares fell as much as 4% after hours, following a 1.1% decline in the regular session to close at $179.48.
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 $3.31 billion from $3.04 billion in the year-ago quarter, as auto-chip sales rose 17% to $1.81 billion from a year ago.
Analysts surveyed by FactSet had forecast $3.64 a share on revenue of $3.3 billion, while forecasting auto-chip sales to $1.81 billion.
The company has a large footprint in supplying chips to the auto industry, accounting for more than 50% of revenue.
NXP also said its board hiked the quarterly dividend by 20%, to $1.014 per ordinary share.
NXP shares are down 5.3% over the past 12 months, while the PHLX Semiconductor Index
is down 13.2%, the S&P 500 index
is down 9.3%, and the tech-heavy Nasdaq Composite Index
has sunk 17.3%.