NXP Semi Stock Is Sliding Tuesday: What's Going On?

NXP Semiconductors N.V. NXPI shares are trading lower Tuesday after the company reported mixed second-quarter financial results and issued soft guidance.

What Happened: NXP reported second-quarter revenue of $3.127 billion, beating analyst estimates of $3.125 billion. The company’s top-line results were down 5% on a year-over-year basis.

NXP reported adjusted earnings of $3.20 per share, missing analyst estimates of $3.21 per share, per Benzinga Pro.

NXP said cash flow from operations came in at $761 million. The company also generated $577 million of free cash flow during the quarter. 

"NXP delivered quarterly revenue of $3.13 billion, consistent with our guidance, with all our focus end-markets performing in-line with our expectations," said Kurt Sievers, president and CEO of NXP.

"With our second-quarter results and guidance for the third quarter, NXP has successfully navigated the cyclical trough in our businesses and we expect to resume sequential growth. We continue to manage what is in our control enabling NXP to drive resilient profitability and earnings in a challenging demand environment."

Related Link: NXP Semiconductor Shares Plunge 7.7% In Pre-Market On Lower Q3 Revenue Forecast Amid Automotive Sector Struggles

NXP expects third-quarter revenue to be in the range of $3.15 billion to $3.35 billion versus estimates of $3.35 billion. The company sees third-quarter adjusted earnings in the range of $3.21 to $3.63 per share versus estimates of $3.56 per share.

Following the print, Cantor Fitzgerald analyst CJ Muse reiterated NXP Semiconductors with an Overweight and maintained a price target of $350.

NXPI Price Action: NXP Semiconductors shares were down 7.42% at $262.75 at the time of writing Tuesday morning, according to Benzinga Pro.

Photo: Shutterstock.