NXP Semiconductors (NXPI) - Get Report, the chipmaker focused on the auto and mobile-phone industries and others, reported a narrower-than-expected third-quarter loss and offered upbeat guidance for the fourth quarter.
In the quarter the Eindhoven, Netherlands, company lost 8 cents a share compared with a profit of 38 cents a share in the year-earlier period.
Revenue was essentially flat with a year ago at $2.3 billion.
A survey of analysts by FactSet produced consensus estimates of a loss of 33 cents a share, on revenue of $2.24 billion.
The company forecast fourth-quarter revenue of $2.38 billion to $2.53 billion. Analysts had been forecasting $2.28 billion.
"The momentum which began during the third quarter is continuing into the fourth quarter of 2020," said Kurt Sievers, NXP president and CEO, in a statement. "Within our strategic end markets of automotive, industrial and IoT and mobile, the improving trends are due to a combination of a rebound in our core business, as well as solid contribution from the ramp of new products. The recovering markets along with our strong product portfolio and customer engagements make us confident to continue to deliver robust growth in 2021,” he said.
Shares rose in after-hours trading, with the stock up $4.11, or 3%, to $139. In the regular session, shares fell 1.7% on a down day for Wall Street. The stock has more than doubled off its 52-week low above $58, set in mid-March.
On Oct. 8, NXP had previewed its third-quarter report, saying that it saw "material improvement in demand across all end markets but particularly in the automotive and mobile" sectors.
On Oct. 16, Mizuho analyst Vijay Rakesh raised his target price on NXP to $152 a share from $127. He has a buy rating on the stock.
"A significantly stronger-than-expected automotive rebound, led by China auto production tracking above pre-covid, U.S. auto and truck production running at 100% utilization, and low dealer inventory are all driving continued strength" in the auto industry, the analyst said in a research note cited by Barron's.