European chipmaker NXP Semiconductors late Monday beat expectations for the second quarter and guided higher for the current period. But NXPI stock retreated in extended trading.
Netherlands-based NXP earned $2.53 a share on sales of $3.31 billion in the June quarter, topping analyst estimates. On a year-over-year basis, NXP earnings rose 78% while sales increased 28%.
For the current quarter, it forecast revenue of $3.425 billion, up 20%. That's based on the midpoint of its outlook. Analysts polled by FactSet had been modeling $3.34 billion in third-quarter sales.
"Notwithstanding the clear macroeconomic cross currents, NXP continues to perform well," Chief Executive Kurt Sievers said in a news release. "Customer demand within the auto and industrial and IoT (Internet of Things) end-markets continues to exceed our incrementally improving supply, even as we risk-adjust our long-term orders."
NXPI Stock Drops Late
In after-hours trading on the stock market today, NXPI stock fell 1.5% to 171.50. During the regular session Monday, NXPI stock dropped 0.6% to close at 174.13.
NXP makes chips for automotive, industrial, mobile, Internet of Things, and communication infrastructure markets. Automotive chips accounted for 52% of its revenue in the second quarter.
NXPI stock ranks seventh out of 31 stocks in IBD's semiconductor manufacturing industry group, according to IBD Stock Checkup. It has an IBD Composite Rating of 85 out of 99. IBD's Composite Rating is a blend of key fundamental and technical metrics to help investors gauge a stock's strengths. The best growth stocks have a Composite Rating of 90 or better.
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