NXP Semiconductors Projects Q1 2025 Revenue Dip Amid Weak Demand

Published 2 days agoNXPI

NXP Semiconductors Projects Q1 2025 Revenue Dip Amid Weak Demand

NXP Semiconductors has announced its earnings guidance for the first quarter of 2025, projecting a revenue decline due to decreased demand in the industrial and automotive sectors. The company expects revenue to fall between $2.73 billion and $2.93 billion, with the midpoint of this range falling short of analysts' estimate of $2.89 billion, as reported by Reuters.

Supporting this forecast, NXP's guidance for diluted earnings per share (EPS) is set between $1.75 and $2.14, according to MarketScreener. The automotive segment is anticipated to see a 6% revenue decline, driven by a decrease in demand and a build-up of automotive chip inventories. Additionally, its Industrial and Internet of Things (IoT) segment is expected to experience a significant 22% revenue drop. These downturns are linked to high electric vehicle prices and elevated interest rates, contributing to the chip inventory buildup among automotive clients, as noted by Reuters.

In response to these market challenges, NXP remains focused on strategic steps to maintain growth. Despite the negative forecast for Q1 2025, the company witnessed a 2% rise in its stock during extended trading, bolstered by its recent fourth-quarter results that surpassed Wall Street expectations. This reflects NXP's ability to adapt to shifting market dynamics while continuing to prioritize growth and innovation.

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