Why NXP Semiconductor Stock Rose In Today’s After-hours

• NXP's revenue dipped 2% YoY, but exceeded the midpoint of the guidance slightly.
• The automotive end market reported sequential revenue growth of 6%.
• Rafael Sotomayor, who is set to take over as CEO on Tuesday, said, “Our outlook reflects the strength of our company-specific growth drivers and signs of a cyclical recovery.”

Dutch semiconductor NXP Semiconductors N.V. (NXPI) reported third-quarter results after the market closed that aligned with guidance and issued a positive outlook for the current quarter, sending its stock up by nearly 2.50% in extended trading and triggering brisk chatter among retailers on the Stockwits platform.

NXP’s Positive Outlook

Eindhoven, Netherlands-based NXP, which manufactures a range of products including microcontrollers and processors, sensors, analog ICs, and connectivity solutions, guided fiscal year 2025 fourth-quarter revenue of $3.20 billion to $3.40 billion and adjusted earnings per share (EPS) of $3.07 to $3.49. The midpoints of the guidance ranges are $3.30 billion and $3.28 per share, respectively, compared to the Fiscal.ai-compiled consensus of $3.23 billion and $3.28 per share. 

Rafael Sotomayor, who is set to take over as CEO on Tuesday following the retirement of Kurt Sievers, said, “Our outlook reflects the strength of our company-specific growth drivers and signs of a cyclical recovery.”

NXP’s Q3 Revenue Falls

NXP reported revenue of $3.17 billion for the third quarter, down 2% year-over-year (YoY), but slightly above the midpoint of the guidance issued in late July and the $3.16 billion consensus estimate. The company noted that it saw broad-based sequential improvement across regional and end markets. The automotive end market, which generated $1.84 billion in revenue, reported sequential growth of 6%. The YoY growth was flat.

The adjusted EPS fell 10% YoY to $3.11, exceeding the midpoint of the guidance range, slightly below the $3.12 consensus estimate. 

What Retail Is Saying About NXP’s Q3 Print

Retail traders on Stocktwits remained ‘extremely bullish’ as of late Monday, although the degree of optimism improved within the zone. The message volume perked up to ‘extremely high’ levels.

A bullish watcher said they expect the stock to climb to $250 on Tuesday. The stock ended Monday’s session up 1.10% at $221.56.

Another user noted a jump in call options volume following the print.

NXP is scheduled to hold its earnings call at 8 a.m. ET on Tuesday. The stock has gained a little over 8% year-to-date.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

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