NXP Semiconductors Reports Softer Guidance Despite Q3 Earnings Beat

NXP Semiconductors reported weaker guidance on Monday, despite exceeding earnings expectations for Q3, as ongoing struggles in its automotive sector continued to impact performance.

Shares of NXP Semiconductors NV (NASDAQ:NXPI) fell 5% in after-hours trading following the announcement.

Q3 Financial Performance

For the three months ended September 29, NXP reported adjusted diluted earnings per share (EPS) of $3.45 and revenue of $3.25 billion. Analysts surveyed by Investing.com had anticipated adjusted EPS of $3.43 and revenue of $3.25 billion.

Automotive Business Challenges

The automotive chip division continued to hinder overall performance, generating revenue of $1.83 billion in Q3, a decrease of 3% year-over-year.

Industrial & IoT Segment Declines

The Industrial & IoT segment, NXP's second-largest unit, faced a 7% decline in revenue year-on-year, amounting to $563 million, indicating growing macroeconomic challenges in this market.

Mobile Segment Growth

Conversely, the Mobile segment was the only division to exhibit annual growth, with a revenue increase of 8% year-over-year to $407 million.

Q4 Outlook

Looking ahead to Q4, NXP provided guidance for adjusted EPS in the range of $2.93 to $3.33, with expected revenue between $3.00 billion and $3.20 billion. This contrasts with analysts' estimates of adjusted EPS at $3.65 on revenue of $3.34 billion.