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NXP Guides for Better-Than-Expected Third-Quarter Results

Company cites strength in mobile and and automotive end markets for strong performance.
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NXP Semiconductors  (NXPI)  on Thursday raised its guidance for the third quarter based on better-than-expected performance, particularly in its automotive and mobile end markets.

“Relative to the mid-point of our guidance, we experienced material improvement in demand across all end markets, but particularly in the Automotive and Mobile end markets,” Kurt Sievers, NXP president and CEO, said in a statement.

The company said it sees revenue for the quarter coming in even with a year ago, at $2.267 billion, vs. previous expectations of a 12% decline. It said non-GAAP operating income for the period will be $586 million compared with previous expectations of $444 million.

The company said it had seen improved demand in both its direct and distribution channels. “The business environment has improved at a faster than anticipated pace, driving a broad-based increase in revenue, which also enabled higher gross margin, Sievers said.

The company will release final results for the quarter on Oct. 26.

Shares of NXP rose $7.17, or 5.3%, to $142.00 in after-hours trading. 

In the broader markets, chip stocks rose Thursday.

The Philadelphia Semiconductor Index rose 27.32 points to 2,356.16. Among notable companies in the sector, 26 rose while 3 fell.

ON Semiconductor  (ON) shares rose $2.69, or 11.5%, to $26.04.

Micron Technology  (MU) shares rose $1.49, or 3.1%, to $49.90.

Lam Research  (LRCX) shares rose $9.66, or 2.8%, to $355.43.

Among laggards, Nvidia  (NVDA) shares fell $5.01, or 0.9%, to $553.55.

Qualcomm  (QCOM) shares fell 69 cents, or 0.6%, to $122.34.

Nvidia and Qualcomm are part of the Real Money Post Industrial Average. To find out more about how you can profit from this and other Real Money premium products, please visit

Advanced Micro Devices  (AMD)  shares fell 18 cents, or 0.2%, to $86.51. AMD introduced a new line of processors Thursday. See a breakdown about them from Real Money’s Eric Jhonsa here