NXP Semiconductors stock drops on weak Q3 outlook

Shares of NXP Semiconductors (NXPI) are dropping after the company posted its second quarter earnings results, issuing a weaker-than-expected revenue outlook for the third quarter. The chip designer posted earnings that were in-line with expectations of $3.20 per share.

Catalysts anchors Madison Mills and Seana Smith break down NXP's earnings figures and guidance.

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This post was written by Nicholas Jacobino

Transcripción del vídeo

Shares of NXP are falling after the chip maker issued weaker than expected guidance revenue at the company's automotive segment that fell 7% from a year ago.

Automakers cutting back on placing new orders for chips Amid slowing sales of EVs, we're seeing that directly impact NXPS Bottom line.

We're seeing a drop here of just about 9% in terms of the street reaction what we are getting out here this morning.

Clearly, that looks to be a disappointment.

Across the street, you have key bank outside that this likely reflects continue weakness here.

Also a bottoming a cycle demand in cyclical demand here in industrial.

So again, when you take a look at that weakness, maybe it could be a bit of good news that we are starting to see some sort of bottoming here.

But again, these disappointing results from NXP semiconductors.

This isn't just affecting this stock with shares off just about 9% but we're also seeing right across the screen.

Mattie, when you take a look at the broader chip sector as well.

Yeah, it's certainly having a broader impact to that degree.

But sticking with an XP one note from Bloomberg Intelligence analyst teams showing that the second quarter results were disappointing, given the outlook here, and that it could be a broader sign of industry headwinds, particularly on an electric vehicle downturn.

That's really interesting, given that we are ahead of those Tesla earnings coming out tonight.

Is that a Bell weather?

We're going to find out in just a few hours here.

The company's guidance and eyes for flat revenue in 2024 could be challenging despite relatively lean channel inventories versus their peers.

We do see downside consensus, though, for long term revenue growth of about 10% for the year.

Not exactly what the street was looking for.

That auto weakness, though, being the critical data point to watch when it comes to an XP.

I and I think that piece of critical to monitor as we continue to get more earnings and from E makers as well