Oct 27 (Reuters) - NXP Semiconductors NV ( NXPI )
forecast fourth-quarter revenue above Wall Street estimates on
Monday, as it recovers from sluggish demand and sees a rebound
in the automotive segment.
Shares of the Eindhoven, Netherlands-based company rose 2%
in U.S. extended trading, having gained 6.6% so far this year.
The chipmaker is benefiting from momentum across automotive
end markets due to demand for its scalable processing solutions.
Analysts say that the auto end market is improving following
tariff-related pull-ins, benefiting companies like NXP.
NXP provides manufacturers with chips and other technology
essential for high-speed digital processing utilized in sectors
like automotive, manufacturing, telecommunications and the
Internet of Things (IoT).
The company has made a string of acquisitions recently,
having closed a $243 million cash deal for Aviva Links, an
automotive networking company, last week. It completed its
TTTech Auto purchase in June, looking to strengthen the
automotive business.
NXP has also received regulatory approvals for its
acquisition of Kinara, which makes high performance,
energy-efficient and programmable discrete neural processing
units, and is working to close the transaction.
The Dutch firm expects fourth-quarter revenue in the range
of $3.20 billion to 3.40 billion, with the midpoint coming in
above analysts' average estimate of $3.24 billion, according to
data compiled by LSEG.
"Our outlook reflects the strength of our company specific
growth drivers and signs of a cyclical recovery," incoming CEO
Rafael Sotomayor said in a statement.
For the third quarter ended September 28, NXP posted revenue
of $3.17 billion, ahead of an estimate of $3.16 billion.
Revenue from the automotive segment - NXP's biggest - grew
6% sequentially in the quarter. Mobile revenue was up 30%.