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NXP Semiconductors News: Why NXPI Stock Is Surging 4% Today

NXP Semiconductors (NASDAQ:NXPI) news for Friday includes an update to its guidance for the third quarter of 2020 pushing NXPI stock up.

A sign on a brick well for NXP Semiconductor (NXPI).
Source: Lukassek / Shutterstock.com

An NXP Semiconductors news release reveals that it now has a mid-point revenue guidance of $2 billion. That’s based on its preliminary revenue results of $2.27 billion for the upcoming earnings report. For comparison, Wall Street is estimating GAAP revenue of $2.06 billion for Q3.

The updated guidance from NXP Semiconductors also includes gross profit coming in at $950 million on a GAAP basis and $980 million on a non-GAAP basis. Adding to that, its preliminary results include $1.09 billion in GAAP gross profit and $1.14 billion in Non-GAAP gross profit.

Operating income and loss guidance for Q3 is also a surprise. It includes a GAAP operating loss of $47 million and a non-GAAP operating income of $444 million. The preliminary results include GAAP operating income of $32 million and non-GAAP operating income of $586 million.

Kurt Sievers, president and CEO of NXP Semiconductors, said the following about the news.

“Relative to the mid-point of our guidance, we experienced material improvement in demand across all end markets, but particularly in the Automotive and Mobile end markets. Additionally, demand improved in both our direct and distribution channels. The business environment has improved at a faster than anticipated pace, driving a broad-based increase in revenue, which also enabled higher gross margin.”

NXPI stock was up 3.9% as of Friday afternoon and is up 4.9% year-to-date as of Thursday’s close.

On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article.

Article printed from InvestorPlace Media, https://investorplace.com/2020/10/nxp-semiconductors-news-sends-nxpi-stock-up/.

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