NXP Semiconductors Auto Strength Helps Offset Industrial Slowdown As Europe Pressures Outlook

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Shares of NXP Semiconductors NV NXPI were trading lower on Tuesday, despite the company reporting upbeat fourth-quarter revenues.

The company reported its quarterly results amid an exciting earnings season. Here are some key analyst takeaways.

Stifel On NXP Semiconductors

Analyst Tore Svanberg reiterated a Hold rating and price target of $231.

NXP Semiconductors reported its December quarter revenues at $3.11 billion, down 4.3% sequentially but in-line with expectations, Svanberg said in a note. Non-GAAP earnings of $3.18 per share came in 2 cents per share short of consensus estimates, "with slight Auto outperformance offset by Comms. Infrastructure coming in below expectations," he added.

The midpoint of the company's revenue guidance for the March quarter, at $2.82 billion, represents a 9.2% sequential decline and is 3.3% lower than the consensus, the analyst stated. The midpoint of the non-GAAP earnings guidance of $2.59 per share came in-line with Street expectations, he further said.

Check out other analyst stock ratings.

Cantor Fitzgerald On NXP Semiconductors

Analyst C.J. Muse maintained an Overweight rating and price target of $250.

NXP Semiconductors' quarterly results were better than feared, "given rising investor concerns as to the state of the automotive market combined with uncertain sustainability of 4Q China demand," Muse said. The Auto segment performed better than expected in the quarter, "helping to offset weakness in Industrial/IOT and Comms," he added.

Management's gross margin guidance of 56.3% is "still robust" and highlights "the company's resiliency in this downturn," the analyst wrote. Prudent cost management is helping NXP Semiconductors to boost its earnings power, he further stated.

KeyBanc Capital Markets On NXP Semiconductors

Analyst John Vinh reaffirmed an Overweight rating on the stock.

NXP Semiconductors' fourth-quarter results were solid and reflected "stable demand in Auto," Vihn said. The company guided to a 9% sequential decline in revenues, which "likely reflects continued macro weakness in Europe," he added.

Management's first-quarter revenue and earnings guidance came in below the consensus estimates, the analyst stated.

NXPI Price Action: Shares of NXP Semiconductors were down 1.3% to $201.99 at the time of publication on Tuesday.

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