Despite headwinds from China, the Netherlands-based semiconductor supplier for the auto industry said it expects second-quarter revenue of between $2.15 billion and $2.25 billion. Analysts were calling for revenue, on average, of $2.15 billion, according to Bloomberg.
Bernstein analyst Stacy Rasgon called the results "quite good" and mentioned good gross margins, operating expense controls, buybacks and a lower tax rate. Rasgon also stated that second-quarter guidance was solid and above consensus.
The stock has an average overweight rating and consensus price target of $105.19. Its dividend yield is 0.9%.
Deutsche Bank analyst Ross Seymore has a buy rating on the stock and was impressed with NXP's second-quarter outlook of 5% growth quarter over quarter.
"Due to a richer mix of sales and good expense control, we successfully delivered improved profitability toward the higher end of our guidance range. Additionally, during the quarter we returned $788 million to our shareholders consistent with our long-term capital return policy," said Richard Clemmer, NXP CEO, in a statement.
"Looking forward, our second-quarter guidance reflects the successful design win momentum and traction we have achieved with our customers. We continue to believe the demand environment in the second half of 2019 should improve vs. the first half, but the macro-economic environment is still uncertain, especially in China," Clemmer added.
The stock gained 6.3% to $104.05.