NEW YORK (TheStreet) -- Shares of NXP Semiconductors (NXPI) - Get Report were falling 16.6% to $75.85 in morning trading Thursday after the Dutch chipmaker reported mixed results for the third quarter and issued a light guidance for the fourth quarter.
NXP reported earnings of $1.57 a share for the third quarter, above analysts' estimates of $1.55 a share for the quarter. Revenue was flat year over year at $1.52 billion for the quarter, compared to analysts' estimates of $1.55 billion.
The chipmaker said it expects fourth quarter revenue to be down in the low to upper-teens percentage range compared to the third quarter, implying a range well below analysts' estimates of $1.58 billion for the quarter.
NXP said it noted "a weakening of demand" as it entered the third quarter as its customers "began to communicate concerns with an uncertain economic environment." The company said its fourth quarter guidance reflects a more cautious view of near term sales due to its end-customers' ongoing concerns about uncertainty around an increase in demand.
TheStreet Ratings team rates NXP SEMICONDUCTORS NV as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
We rate NXP SEMICONDUCTORS NV (NXPI) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, growth in earnings per share, increase in net income and good cash flow from operations. We feel its strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.
You can view the full analysis from the report here: NXPI