(Bloomberg) -- NXP Semiconductors NV, the second-biggest supplier of chips to the automotive industry, gave a strong forecast for the current quarter, helped by a flood of demand from vehicle makers desperate for parts.
- First-quarter revenue will be about $3.03 billion to $3.18 billion, NXP said Monday. That compares with an average analyst estimate of $2.95 billion.
- “We continue to see growing customer demand, outstripping supply, as inventory across all end markets remains very lean,” Chief Executive Officer Kurt Sievers said in a statement. “Taken together, this underpins our continued confidence of robust growth throughout 2022.”
Key Insights
- Demand for automotive chips has been surging as car production starts to recover from the pandemic and vehicles need more electronics to improve their performance, navigate roads and monitor their surroundings.
- Like many other chipmakers, NXP doesn't manufacture all of its semiconductors in-house, instead outsourcing production to suppliers such as Taiwan Semiconductor Manufacturing Co. Those so-called foundries are swamped with orders they're struggling to fill.
- In the fourth quarter, NXP had sales of $3.04 billion. Its gross margin -- the percentage of sales remaining after deducting costs of production -- was 57.3%, minus certain items. The figures beat analysts' estimates. Gross margin will range from 56.8% to 57.8% this quarter, minus certain items, the company said.
- NXP also said it would buy back as much as $2 billion in shares and increased its quarterly dividend by 50% to about 85 cents a share.
Market Reaction
- Shares of NXP were up less than 1% in extended trading following the announcement. They had been down 9.8% this year, closing at $205.44.
Get More
- Read the company's statement.
- See more on the results here.
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