NXP Semiconductors (NXP Semiconductors) announced its first-quarter earnings report after the market on Monday (2nd), revenue was better than market expectations and set a new record again. Chip peers were more optimistic, with shares up more than 1 percent after hours.
NXP’s net profit nearly doubled to $657 million in the first quarter of fiscal 2022, which ended April 3, or $2.48 per share, beating the $2.23 per share polled by analysts polled by FactSet. First-quarter revenue rose 22 percent to $3.14 billion, beating analysts’ estimates of $3.1 billion.
Looking ahead to the second quarter, NXP forecasts revenue of $3.175 billion to $3.375 billion and adjusted operating profit of $1.104 billion to $1.232 billion. Both beat analysts’ estimates of $3.15 billion in revenue and $1.09 billion in earnings, respectively.
Amid Wall Street’s worries about the chip industry, NXP Chief Executive Kurt Sievers said in a statement: “Our expectations for strong growth in 2022 are being met. Customer demand remains strong, particularly with our operationally focused accelerating growth engine. Overall , market demand remains greater than supply, and inventories remain low across all end markets.”
Although semiconductor companies have released good financial reports one after another, they have mixed views on the outlook. Also a major manufacturer of automotive chips, Texas Instruments (TXN-US) recently released a cautious financial report, mainly because China’s epidemic prevention and control may affect customers’ production facilities, however, Intel (INTC-US) optimistic about full-year sales, Qualcomm (QCOM-US) also issued strong forecasts. The next focus will be on Super Micro in the US after the market on Tuesday (AMD-US) financial report.
NXP’s four major end markets are automotive, industrial and IoT, mobility, communications and infrastructure. In the first quarter, revenue from its automotive chip business rose 27% to $1.56 billion, revenue from its industrial and Internet of Things business rose 19% to $682 million, and revenue from its communications and infrastructure chip business also rose 18% to $4.96 Mobile revenue rose 16% to $401 million.
As semiconductor stocks rebounded on Monday, NXP (NXPI-US) shares closed up 3.6 percent at $177 a share, rising 1.21 percent in after-hours after the earnings report.