NXP Semiconductors predicts final quarter revenue fall on tough market

NXP Semiconductors NV reported a decline in third-quarter earnings on Monday, citing "broader macro weakness" as it heads into the final quarter of the year.

NXP Semiconductors predicts final quarter revenue fall on tough market

The Eindhoven-based semiconductor designer and manufacturer announced a net income of $729 million for the quarter ending September 29, down 8% from $792 million a year earlier. Revenue also fell by 5.4%, decreasing to $3.25 billion from $3.43 billion. Basic net income per share declined to $2.82, compared to $3.06 in the same period last year. NXP's diverse product portfolio includes microcontrollers, processors, and sensors, serving customers across the automotive, industrial, and consumer sectors.

CEO's comment

"NXP delivered quarterly revenue of $3.25 billion, in line with our overall guidance," said Chief Executive Officer Kurt Sievers. "While we saw some unexpected strength in the communication infrastructure, mobile, and automotive markets, we are also facing increasing macro-related challenges in the industrial and Internet of Things sectors." Looking ahead, the company’s fourth-quarter guidance reflects this broader macro weakness, particularly in Europe and the Americas. NXP expects revenue to range between $3.00 billion and $3.20 billion, representing a year-over-year decline of 6% to 12% and a quarter-over-quarter decrease of 2% to 8%. "We are focused on managing what is within our control to ensure NXP maintains resilient profitability and earnings amid an uncertain demand environment," Sievers added.