NXP Semiconductors late Monday beat estimates for the fourth quarter thanks to a surge in automotive chip sales. But it set its outlook lower for the current period. NXPI stock slid in extended trading.
The Dutch chipmaker earned an adjusted $3.73 a share on sales of $3.31 billion in the December quarter. Analysts polled by FactSet had expected NXP to earn $3.64 a share on sales of $3.3 billion. On a year-over-year basis, NXP earnings rose 17% while sales climbed 9%.
In the fourth quarter, NXP's automotive chip sales jumped 17% to nearly $1.81 billion. However, industrial chip sales dropped 8% to $605 million. Meanwhile, mobile chip sales increased 9% and communications infrastructure chips advanced 8% in the quarter.
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For the current quarter, NXP forecasts adjusted earnings of $3.01 a share on sales of $3 billion. That's based on the midpoint of its outlook. Wall Street had predicted earnings of $3.14 a share on sales of $3.17 billion in the first quarter.
NXPI Stock Drops On Weak Outlook
In after-hours trading on the stock market today, NXPI stock dropped 3.6% to 172.99. During the regular session Monday, NXPI stock fell 1.1% to close at 179.48.
"From an end-market perspective, our automotive business performed very well, while in our consumer IoT (Internet of Things) and mobile businesses we experienced a softening demand environment through the second half of 2022," Chief Executive Kurt Sievers said in a news release.
In other news, NXP announced a 20% increase to its quarterly cash dividend to $1.014 per ordinary share.
NXPI stock ranks No. 10 out of 31 stocks in IBD's semiconductor manufacturing industry group, according to IBD Stock Checkup. It has an IBD Composite Rating of 91 out of 99.
IBD's Composite Rating combines five separate proprietary ratings into one easy-to-use rating. The best growth stocks have a Composite Rating of 90 or better.
Follow Patrick Seitz on Twitter at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.