NXP gives soft guidance on industrial, European weakness

NXP Semiconductors NV has reported sales revenue for its 3Q24 of US$3.25 billion, the mid-point of the previous quarter’s guidance, but the company forecast a decline in sales in 4Q24.

Revenue was up sequentially 4 percent but down year-on-year by 5 percent. The company made a net profit of US$718 million. However, the Dutch firm’s share price dipped by about 6 percent as the company guided that sales in 4Q24 would likely fall to between US$3.0 billion and US$3.2 billion.

All of the company’s business units saw declining sales year-on-year with the exception of the mobile business, which increased 8 percent. Automotive, which represents more than half of NXP’s business was down 3 percent, industrial and IoT was down 7 percent and communications infrastructure was down 19 percent.

“NXP delivered quarterly revenue of $3.25 billion, in-line with our overall guidance. While we experienced some strength against our expectations in the communication infrastructure, mobile and automotive end markets, we were confronted with increasing macro related weakness in the industrial and IoT market. Our guidance for the fourth quarter reflects broader macro weakness especially in Europe and the Americas,” said Kurt Sievers, CEO of NXP, in a statement.