06:26 AM EST, 02/04/2025 (MT Newswires) -- NXP Semiconductors ( NXPI ) issued a downbeat first-quarter outlook at the midpoint but the Dutch chipmaker's shares inched higher early Tuesday amid better-than-expected results in the prior three-month period.

Adjusted earnings are anticipated to be in a range of $2.39 to $2.79 a share for the first quarter of 2025, the company said late Monday. The guidance range's midpoint of $2.59 is below the FactSet-polled consensus of $2.68. Revenue is pegged at $2.73 billion to $2.93 billion, with a midpoint of $2.83 billion. The Street is looking for $2.91 billion.

In a Monday client note, Truist Securities said the semiconductor company's guidance appears a "bit better than investors feared" despite coming in "modestly below consensus" amid the recent feedback the brokerage has received from industry contacts and outlooks offered by other diversified analog and microcontroller companies.

NXP's adjusted EPS dropped to $3.18 for the December quarter from $3.71 the year before, but topped the Street's view for $3.14. Overall revenue declined 9% year over year to $3.11 billion, just above the average analyst estimate of $3.1 billion. The company's US-listed shares inclined 1.1% in premarket activity.

"NXP delivered resilient results throughout 2024, reflecting solid execution, consistent gross margin, and healthy free cash flow generation despite a challenging market environment," Chief Executive Kurt Sievers said in a statement. "We rigorously focus on managing what is in our control, to navigate a soft landing while executing our growth strategy."

NXP's automotive revenue fell 6% year over year $1.79 billion but was 2.9% above market expectations, according to Truist. Industrial and internet of things logged a 22% drop in revenue to $516 million, while mobile ticked down 2% to $396 million. Revenue in the communications infrastructure business fell 10% to $409 million.

The chipmaker's gross margin was 53.9% during the quarter versus 56.6% in the prior-year period. Fourth-quarter operating expenses fell to $963 million from $1.03 billion last year, the company said.