NXP Semiconductors NV (NXPI - Get Report) beat Wall Street's revenue expectations on its fourth-quarter 2018 earnings report Wednesday evening but offered a downbeat revenue forecast for the first quarter.
The chip maker reported net income of $276 million, or 94 cents a share on revenue of $2.4 billion. Wall Street estimates for the Eindhoven, Netherlands-based company were for earnings of 42 cents a share, using International Financial Regulatory Standards, on revenue of $2.38 billion.
"Demand has weakened for the first quarter, primarily in the automotive and industrial end-markets in China," Richard Clemmer, NXP CEO, said in a statement.
Management guided for first-quarter 2019 revenue of between $2.02 billion and $2.16 billion vs. analyst estimates of $2.24 billion, per FactSet.
While many chip companies have been lowering revenue expectations for the current quarter, their stocks have performed surprisingly well this earnings season because expectations were so low, according to RealMoneyPro's Eric Jhonsa. Click here to find out more about how to access his insights.
Shares of NXP have risen about 25% so far this year.