NXP Semiconductors NV (NASDAQ:NXPI) stock fell 9.35% (As on July 23, 11:16:27 AM UTC-4, Source: Google Finance) after the company provided an earnings and revenue outlook that disappointed investors. The automotive segment pulled in revenue of $1.73 billion, down 7% from the same period one year earlier and 4% on a sequential basis, compared to the prior quarter. On the other hand, the Industrial and IoT unit delivered $616 million in sales, up 7% from a year earlier and also up 7% sequentially. The mobile segment delivered $345 million in sales, up 21% from a year earlier and 1% sequentially, while the communications, infrastructure and other segment generated $438 million in revenue, down 10% from a year earlier and 23% sequentially.
Meanwhile, NXP announced the 5nm S32N55 processor, the first device in the S32N family of vehicle super-integration processors. As the heart of the recently announced S32 CoreRide central compute solution, it offers scalable combinations of safe, real-time and applications processing to address automakers’ diverse central compute needs. NXP has announced a collaboration with ZF Friedrichshafen AG (“ZF”), a global leader in e-mobility, on next-generation SiC-based traction inverter solutions for electric vehicles (EVs). ZF will adopt NXP’s advanced GD316x high-voltage isolated gate drivers, to accelerate the adoption of 800-V and SiC power devices for next generation all electric vehicles. NXP and Vanguard International Semiconductor Corp. (“VIS”) announced the plan to create a manufacturing joint-venture VisionPower Semiconductor Manufacturing Company Pte Ltd (“VSMC”) which will build a new 300mm semiconductor wafer manufacturing facility in Singapore. The joint-venture fab will support 130nm to 40nm mixed-signal, power management and analog products, targeting the automotive, industrial, consumer and mobile end markets. The underlying process technologies are planned to be licensed and transferred to the joint venture from TSMC.
NXPI in the second quarter of FY 24 has reported the adjusted earnings per share of $3.20, missing the analysts’ estimates for the adjusted earnings per share of $3.21. The company had reported the adjusted revenue decline of 5 percent to $3.13 billion in the second quarter of FY 24, beating the analysts’ estimates for revenue of $3.12 billion.
Looking to the third quarter, it’s forecasting earnings of between $3.21 and $3.63 per share, the midpoint of which came in below Wall Street’s target of $3.56 in earnings. Similarly, NXP said it’s looking for third-quarter revenue of between $3.15 billion and $3.35 billion, trailing the Street’s consensus estimate of $3.35 billion.