NXP Reports Stronger-Than-Expected Earnings and Sales, But Shares Slip

NXP's profit totaled $320 million, or $1.08 per share, ahead of analyst estimates of $0.89 a share.
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Shares of NXP Semiconductors  (NXPI) - Get Report fell Monday, even after the company reported stronger-than-expected earnings and revenue for the fourth quarter.

Net income totaled $320 million, or $1.08 per share, up from $123 million, or 40 cents a share in the year-ago quarter. The FactSet analyst consensus called for EPS of 89 cents a share.

NXP registered revenue of $2.51 billion, rising 9% from $2.30 billion last year and topping the analyst consensus of $2.46 billion.

NXP shares recently traded at traded at $167.01, down 2.64% after hours. They climbed 6.89% during the regular session Monday, and have jumped 46% over the last six months.

“During the first half of the year, NXP was faced with the unprecedented shut down of our customers in most end markets and geographies because of the global pandemic,” Chief Executive Kurt Sievers said in a statement.

“As we entered the second half of 2020, and our customers began to re-open, NXP experienced a very robust rebound in demand, which we anticipate continuing throughout 2021. In the fourth quarter, … we experienced especially strong trends in the automotive and mobile end markets."

Further, “Notwithstanding a tumultuous 2020, revenue associated with key strategic growth areas accelerated throughout the year,” Sievers said.

Morningstar analyst Brian Colello rates the company with a narrow moat. “NXP Semiconductors is the largest supplier of semiconductors for the automotive market and a significant force in the analog and micro-components markets generally,” he wrote last year.

“We believe the firm has a durable position in the automotive, industrial, and communications infrastructure markets due to a combination of switching costs and intangible assets," wrote Colello.