NXP Semiconductors (NXPI, Financial) shares declined 1.75% to $201.15 as of 12:37 p.m. ET Tuesday after the company beat Q4 estimates but issued weaker-than-expected Q1 guidance, reflecting broader macroeconomic softness in key markets.
Q4 Performance & Q1 Guidance
- Q4 results: Generally in line with expectations, supported by stable demand in Automotive, while Industrial, IoT, and Mobile/Comms segments underperformed.
- Q1 revenue guidance: $2.83 billion (midpoint), below KeyBanc's estimate of $2.90 billion and the $2.89 billion consensus.
- Q1 EPS forecast: $2.59 (midpoint), trailing the $2.68 consensus.
- Sequential revenue decline: 9% quarter-over-quarter, attributed to ongoing macro weakness in Europe.
Analyst Sentiment & Sector Context
- KeyBanc Capital Markets: Viewed results as solid but acknowledged macro challenges, particularly in Europe and industrial markets.
- Bernstein: Maintained a Market-Perform rating with a $225 price target, noting that guidance was weak but in line with broader analog sector trends.
- Truist Securities: Retained a Buy rating with a $264 price target, suggesting that while guidance was modestly below consensus, it exceeded worst-case fears given recent analog/microcontroller industry feedback.
Automotive Strength vs. Broader Weakness
Despite pressure across Industrial and IoT, NXP's Automotive segment outperformed expectations by 2.9%, partially offsetting weakness in other markets. However, analysts remain cautious on near-term demand softness in the broader analog and semiconductor space.
