NXP forecasts upbeat Q4 revenue as auto and mobile demand rebound

Investing.com -- NXP Semiconductors forecast fourth-quarter revenue above expectations on Monday, pointing to improving demand across key end markets, particularly automotive.

Shares of the Eindhoven-based chipmaker rose over 1% in premarket trading Tuesday.

The chipmaker expects fourth-quarter revenue between $3.20 billion and $3.40 billion, with the midpoint exceeding analysts’ forecast of $3.24 billion.

“Our outlook reflects the strength of our company-specific growth drivers and signs of a cyclical recovery,” incoming CEO Rafael Sotomayor said.

For the third quarter ended Sept. 28, NXP reported revenue of $3.17 billion, slightly ahead of consensus.

Earnings per share (EPS) were $3.11, roughly in line with the $3.12 consensus.

Automotive sales rose 6% sequentially to $1.84 billion, while mobile revenue jumped 30% to $430 million.

Industrial & IoT climbed 6% to $579 million, and communications infrastructure revenue gained 2% to $327 million.

China revenue rose 13% quarter-on-quarter, while distribution sales grew 14%, indicating early signs of restocking.

Gross margin was steady at 57%, while operating margin improved to 33.8%.

Jefferies analyst Blayne Curtis said results and guidance were “largely in line and likely better than many other analog names.”

“NXP is still one of the best operators, but we remain cautious on Analog more broadly with the recovery likely pushed out until 2Q26 earliest,” he added.

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