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Key Takeaways
- NXP shares jumped 6% in extended trading Monday after the Dutch-based chipmaker posted quarterly earnings and a current-quarter outlook that came in ahead of estimates.
- CEO Kurt Sievers said that the chipmaker remains cautiously optimistic about how it’s performing in an industry downturn and a challenging demand environment.
- Sales in the company’s industrial and IOT segment and mobile device chips unit helped offset weakness in its communications infrastructure and automotive chip businesses in the quarter.
- Investors should monitor the $270 level, a region where the price may encounter overhead resistance from an ascending channel’s upper trendline.
NXP Semiconductors N.V. (NXPI) posted quarterly earnings above analysts’ expectations and issued a better-than-expected bottom-line outlook for the current quarter amid a challenging environment, sending the chipmaker’s shares 6% higher in Monday’s extended-hours trading session.
For the first three months of the year, the Dutch-based company reported adjusted earnings of $3.24 per share, ahead of analysts’ estimates of $3.19 a share. Revenue in the period of $3.13 billion inched higher from a year earlier and was in line with the consensus view.
Sales were mixed in the quarter, with growth in the company’s industrial and internet of things (IOT) segment and mobile device chips unit helping to offset weakness in its communications infrastructure and automotive chip businesses.
Looking ahead, the company guided a current-quarter adjusted profit of $3.20 per share on $3.13 billion in revenue. The company’s top-line forecasts roughly matched expectations, while its bottom-line projection edged ahead of the $3.14 a share consensus.
“Our first-quarter results, guidance for the second quarter, and our early views into the second half of the year underpin a cautious optimism that NXP is successfully navigating through this industry-wide cyclical downturn,” NXP CEO Kurt Sievers said in the company’s earning’s statement.
Level to Watch as Stock Nears Record High
NXP shares have oscillated within an ascending channel since August 2022 to establish easily identifiable support and resistance areas on the chart.
More recently, the price found support at the 200-day moving average and closed above the 50-day moving average last week, indicating bullish sentiment leading into the company’s quarterly results.
Indeed, better-than-expected earnings have the stock posed to open Tuesday within close proximity to its record high at $264.26. Amid further upside, investors should monitor the $270 level, a region where the price may encounter overhead resistance from the ascending channel’s upper trendline.
NXP shares gained 6.0% to $261.89 in after-hours trading Monday. Through Monday’s close, the stock had gained 8% since the start of the year.
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