NXP Semiconductors (NXPI) Stock: Gaining On Strong Guidance

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NXP Semiconductors NXPI Stock News

NXP Semiconductors NV (NASDAQ: NXPI) is having an incredibly strong day in the market today, and for good reason. The company reproted its earnings for the first quarter and offered up strong guidance for Q2. Today, we’ll talk about:

  • The earnings report;
  • what we’re seeing from NXPI stock as a result; and
  • what we’ll be watching for ahead.

NXPI Stock Gains On Strong Guidance

As mentioned above, NXP Semiconductors is having an incredibly strong start to the trading session this morning after reporting its financial results for the first quarter. Here’s what we saw from the report:

During the first quarter, NXPI said that it generated a net loss of $21 million. This worked out to about $0.07 per share. Moreover, earnings, adjusted for non-recurring costs and stock option expense, came to $1.95 per share. This figure beat analyst expectations of $1.55 per share.

During the quarter, the company generated $2.09 billion in revenue. Revenue came in line with expectations. Moreover, gross margin came to 52.7% with operating margins coming to 26.7%.

In the second quarter, the company is expecting that it will generate revenue between $2.15 billion and $2.25 billion. Gross profits are expected to come in between $1.134 billion and $1.21 billion and operating income is expected to come in between $589 million and $644 million.

In a statement, Richard Clemmer, CEO at NXPI, had the following to offer:

Due to a richer mix of sales and good expense control, we successfully delivered improved profitability toward the higher end of our guidance range. We continue to believe the demand environment in the second half of 2019 should improve versus the first half, but the macro-economic environment is still uncertain, especially in China.

What We’re Seeing From The Stock 

One of the first lessons that we learn when we start to work in the market is that the news leads to moves. In the case of NXP Semiconductors, the news proved to be overwhelmingly positive.

After all, not only did the company beat expectations with regard to earnings and come in line in terms of revenue, the company is guiding for a strong Q2 report. So, it’s not surprising to see that excited investors are pushing the stock on a run for the top.

As is just about always the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (9:37), NXPI is trading at $105.23 per share after a gain of $7.33 per share or 7.51% thus far today.

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What We’ll Be Watching For Ahead

Moving forward, the CNA Finance team will continue to keep a close eye on NXPI. In particular, we’re interested in following the story surrounding the company’s continued work to expand value for investors. Nonetheless, we’ll keep a close eye on the news and bring it to you as it breaks!

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