NXP Semiconductors falls on soft guidance amid weakness in automative chip unit

Investing.com — NXP Semiconductors reported softer guidance Monday despite better-than-expected earnings in Q3 as ongoing weakness in its automotive business continued to weigh.

NXP Semiconductors NV (NASDAQ:) fell  5% in afterhours trading following the news.

For the three months ended on Sept. 29, Netherlands-based NXP reported adjusted diluted earnings per share of $3.45 and revenue of $3.25 billion. Analysts polled by investing.com had called for adjusted EPS of $3.43 and revenue of $3.25B, respectively.

The company’s automotive chip business continued to drag on performance, with revenue of $1.83B in the third quarter, down 3% year-on-year.

The Industrial & IoT segment, the second largest unit,  saw revenue decline 7% year-on-year to $563 million, reflecting increasing macro-related weakness in this market.

The Mobile segment was the sole unit showing annual growth, with revenue up 8%  year-on-year to $407M.

For the fourth quarter, the company guided adjusted EPS in a range of $2.93 to $3.33 on revenue between $3.00B to to $3.20B. That compared with estimates for adjusted EPS of $3.65 on revenue of $3.34B.