NXP Semiconductors tops consensus in Q3, driven by Automotive sales
NXP Semiconductors (NASDAQ:NXPI) shares gain after exceeding Q3 consensus mark.
Revenue grew 20% Y/Y: Automotive sales grew 24%; Industrial & IoT sales up 17%; Mobile sales up 19%; Comm. Infra. & Other sales up 14%.
Non-GAAP gross margin was 58% compared to 56.5% year ago and non-GAAP operating margin was 36.9% for the quarter compared to 33.5% year ago.

"Looking ahead, while we continue to be supply constrained, we are cautious in the intermediate term, due to the uncertainties in the macro environment," said Kurt Sievers, NXP President and Chief Executive Officer.
Q4 Outlook: Revenue to be in the range of $3.2B-$3.4B vs. consensus of $3.41B; Non-GAAP Gross Profit Margin of 57.3% to 58.3% vs. consensus of 57.6%; Non-GAAP Operating margin of 35.1% to 36.8% vs. consensus of 35.8%.

Analyst comments after results:

Jefferies (buy, PT $165) - NXPI highlighted âresilient demandâ in auto and industrial segments, however noted weakening demand in consumer IoT business. The company also noted âincrementally improving supplyâ
Evercore ISI (outperform, PT $190) - The forecast miss was driven by a broadening weakness into its consumer- exposed IoT segment. âAll eyes on cyclical outlook over the intermediate-term and how NXPI sees itself weathering the coming storm given strong secular tailwinds in the Auto/Industrial marketsâ
Truist Securities (buy, PT $216) - These results seem âexactly what investors were expectingâ given the companyâs strong backlog, shortages and a weakening macro backdrop. The bigger question is âwhether fading demand will transition from the consumer to now include industrial, automotive, and other end markets during 2023â