NXP Semiconductor rises as Wall Street praises Q2 strength
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NXP Semiconductors (NASDAQ:NXPI) shares rose more than 3.5% in pre-market trading on Tuesday as investors digested the company's second-quarter earnings report, which received praise from Wall Street.
Evercore ISI analyst C.J. Muse, who has an outperform rating and per-share price target of $240 on NXP (NXPI), said it was a "steady as she goes" quarter as the company posted a "solid beat and raise" across all segments, with notable strength in industrial and internet of things. 
Conversely, the company's management said it is handling the downturn in consumer facing businesses.
"Overall, we got another solid earnings release from NXPI in the face of continued investor fears â and numbers will be moving higher," Muse wrote in an investor note.
During the period, NXP Semiconductors (NXPI) earned an adjusted $3.43 per share on $3.3B in revenue, topping estimates of $3.28 per share in adjusted earnings and $3.21B in revenue.
Cash flow from operations during the quarter was $756M and free cash flow was $556M.
Looking ahead, NXP (NXPI) expects third-quarter adjusted earnings to be between $3.39 and $3.82 per share, with sales falling within a range of $3.3B to $3.5B.
Wells Fargo analyst Gary Mobley, who has an overweight rating and per-share price target of $210, said NXP's results were "much better-than-expected" as revenue and margins were both above guidance. 
"NXP's early view is cautious optimism into the [second-half] of the year," Mobley wrote in an investor note. "As we stated in our EPS preview note, we believe forward year estimates may have grown too pessimistic."
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