NXP Semiconductors forecasts strong quarterly results, shares jump

April 28 (Reuters) – NXP Semiconductors forecast second-quarter revenue and profit above Wall Street expectations on Tuesday, betting on an ongoing recovery in the industrial and automotive chip markets to boost revenue, sending its shares up 15% in extended trading.

NXP derives most of its revenue from the automotive and industrial markets, where new orders are on the uptick after a prolonged slump as end-market customers clear out excess inventory built up during the pandemic.

• NXP forecast second-quarter revenue between $3.35 billion and $3.55 billion, compared with estimates of $3.27 billion, according to data compiled by LSEG.

• It expects quarterly adjusted profit per share of between $3.29 and $3.72, above estimates of $3.17 per share.

• Analog chipmaker Texas Instruments also provided a strong forecast last week, bolstered by data center and industrial chip demand.

• NXP’s revenue for the first quarter came in at $3.18 billion, beating estimates of $3.16 billion.

• On an adjusted basis, the company earned $3.05 per share, compared with estimates of $2.95 per share.

(Reporting by Zaheer Kachwala in Bengaluru; Editing by Jonathan Ananda)