Why NXP Semiconductors Stock Is Volatile After-Hours

NXP Semiconductors N.V. NXPI shares are volatile in Monday's after-hours session on the heels of the company's third-quarter earnings results.

What To Know: NXP posted quarterly earnings of $3.70 per share which beat the analyst consensus estimate of $3.59, a 2.89% decrease over earnings of $3.81 per share from the same period last year.

The company reported quarterly sales of $3.43 billion which beat the analyst consensus estimate of $3.40 billion. The figure represents a year-over-year decrease of 0.44% over sales of $3.44 billion from the same period last year.

Additionally, cash flow from operations was $988 million, net capex investments were $200 million, and free cash flow was $788 million. Also, in August, the company, alongside other leading semiconductor companies, announced the planned formation of a joint-venture. The goal is to increase RISC-V adoption globally.

NXP issued fourth-quarter earnings guidance of between $3.44 and $3.86 per share, versus the $3.61 estimate. Total revenue is anticipated to be between $3.3 billion and $3.5 billion, versus the estimate of $3.43 billion.

"NXP delivered quarterly revenue of $3.43 billion, $34 million above the midpoint of guidance. Revenue trends in our Mobile, Industrial & IoT and Automotive end-markets all performed in-line or better than anticipated, while our Communication Infrastructure & Other end market was slightly below our expectations," said Kurt Sievers, NXP President and CEO.

"The combination of our third quarter results, and the mid-point of our fourth quarter guidance indicates revenue for the full year 2023 will be flat versus 2022 in a challenging and cyclical market environment."

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NXP Price Action: Shares of NXP were up 0.52% at $183.75 in the after-hours session at the time of publication, according to Benzinga Pro.

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