NXP Semiconductors Higher on Swing to Quarterly Profit

NXP Semiconductors swings a stronger-than-expected first-quarter profit from a year-earlier loss on 27% higher revenue.
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NXP Semiconductors  (NXPI) - Get Report swung to a stronger-than-expected first-quarter profit from a year-earlier loss on 27% higher revenue.

The Eindhoven, Netherlands, chipmaker reported that it earned $1.25 a share compared with a loss of 8 cents a share in the year-earlier quarter. Revenue reached $2.57 billion from $2.02 billion.

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A survey of analysts by FactSet produced consensus estimates of IFRS earnings of $1.18 a share on revenue of $2.56 billion.

At last check, NXP shares were trading up 1.5% to $208.10. They closed regular Monday trading at $205.02, up 1.7%. The stock touched a 52-week high of $216.43 on April 5.

Gross-profit margin widened to 52.8% for the quarter from 49.3% a year earlier.

"We continue to be encouraged by the long-term demand trends across all our end markets, which underpin our continued confidence of very robust growth throughout 2021," President and Chief Executive Kurt Sievers said in a statement.

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At the beginning of February, industry sources told the Korea Times that Samsung SSNLF was shopping for acquisition targets, particularly in automotive semiconductors. NXP was on the list of potential targets, the news service reported.

A week ago J.P. Morgan analyst JJ Park also spoke to the issue, Barron’s reports. He said that Samsung acquiring an automotive chipmaker made sense and NXP was among a number of candidates the analyst suggested.

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First-quarter revenue from NXP's automotive operations leaped 24% to $1.23 billion. The automotive revenue accounted for 48% of total revenue in the period.

And in early March, with NXP shares trading at $171, RealMoney’s Chris Versace wrote that NXP boosted its dividend big-time -- but that there’s much more to the story.

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