Business Express is an online portal that covers the latest developments in the world of business and finance. From startups and entrepreneurship to mergers and acquisitions, Business Express provides reporting on the stories that matter most to business leaders and decision-makers.The website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website.
2024 02 05T223725Z 1 LYNXMPEK140VI RTROPTP 4 NXP 5G - Business Express

Chipmaker NXP forecasts profit above estimates on automotive strength


(Reuters) – Chipmaker NXP Semiconductors forecast first-quarter profit above target and reported better-than-expected revenue for the last quarter on Monday, banking on a strong automotive market, a key consumer of its technology.

Netherlands-based NXP supplies manufacturers with chips and other technologies needed for high-speed digital processing used in industries such as automotive, manufacturing, telecom and the Internet of Things (IoT).

Manufacturing of light vehicles grew 9% globally last year and hit pre-pandemic production levels, according to a report by S&P Global. Meanwhile, growth in the U.S. auto market was its best since 2019 last year.

The automotive consumer segment grew 5% in the fourth quarter, accounting for 56% of NXP’s overall revenue in 2023.

NXP forecast adjusted profit per share for the March quarter between $2.97 and $3.38. The mid-point of the range is higher than the $3.15 consensus estimates from three analysts, according to LSEG data.

However, the revenue forecast came in at a midpoint of $3.13 billion, shy of expectations of $3.16 billion, due to anticipated weakness in the electric vehicles segment and the Chinese electronic market.

Don't miss out on any breaking news or insightful opinions!
Subscribe to our free newsletter and stay updated on the go!


By submitting this form, you are consenting to receive marketing emails from: Global Banking & Finance Review. You can revoke your consent to receive emails at any time by using the SafeUnsubscribe® link, found at the bottom of every email.

“We are navigating a soft landing by managing what is in our control, especially limiting over-shipment of products to customers,” said Kurt Sievers, NXP president and chief executive officer.

Revenue in the fourth quarter ended December 31, was $3.42 billion, higher than the consensus estimate of $3.40 billion.

Nasdaq-listed shares of NXP rose nearly 3% in trading after the bell. The stock closed 2.8% up on Monday.

 

(Reporting by Yuvraj Malik in Bengaluru; Editing by Tasim Zahid)

Recent Post: