(Bloomberg) — Shares of NXP Semiconductors NV fell the most in four years after its third-quarter guidance disappointed investors.
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The Dutch chipmaker forecast revenue of $3.15 billion to $3.35 billion in the period ending in September, the company said Monday in a statement. The midpoint is below analysts’ average estimate of $3.35 billion, according to data compiled by Bloomberg.
The company also projected earnings of $3.21 to $3.63 per share for the September quarter, compared with an average estimate of $3.56 per share.
NXP shares fell 8.5% to $259.78 at 10:13 a.m. Tuesday in New York, having closed at $283.81. The stock suffered its biggest intraday drop since April 2020. Before Monday’s earnings announcement, the stock had jumped 24% this year.
Semiconductor manufacturers around the world have struggled in recent quarters to deal with a global inventory glut that has hurt sales. The European Commission has also warned that the region’s chipmakers risk losing substantial market share to China as the Asian country invests in its own chipmaking industry.
Second-quarter revenue fell 5% to $3.13 billion. Sales at NXP’s largest division, automotive chips, fell 7% from a year earlier. NXP’s results could serve as a bellwether for the semiconductor industry, as it reported earnings well before other major chipmakers.
“We continue to manage what is within our control, enabling NXP to generate resilient profitability and earnings in a challenging demand environment,” CEO Kurt Sievers said in the statement.
–With help from Ian King.
(Updates the stock price and writes through the lede.)
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