NXP Semiconductors, the Dutch chipmaker, beat expectations by a narrow margin, even though it fell short on earnings. This information comes from the recent first-quarter financial results announcements on Monday.
The report says that the company made a profit (before costs like stock compensation at $1.25 per share) on revenue of $2.567 billion (up 27% from a year ago).
Wall Street had predicted that the profit would hit $2.21 per share on revenue of $2.56 billion. Chief Executive Kurt Sievers noted that there is a positive product mix and the increased revenue helped the company deliver an operating profit that exceeded its guidance.
NXP’s next move
Sievers added that the company continues to be encouraged by the long-term demand trends on all its markets, which underpin the continued confidence that there will be very robust growth throughout the year.
NXP makes a wide range of chips that are used for identification, in cars, wired and wireless infrastructure, as well as consumer, lighting, computing, industrial and mobile applications.
The company is well-regarded since it has impressive security measures implemented. For instance, its automotive chips have gateways that prevent communication with every network within a car independently, to prevent hacking attempts.
NXP’s biggest seller is its automotive chip division, which was responsible for generating $1.23 billion of the company’s first-quarter revenue (which was up 24% from a year ago). The Industrial and IoT division managed to get $571 million (up 52%), closely followed by the Mobile division, which took home $346 million (up 40%).
Finally, the Communications Infrastructure & Other business divisions brought in $421 million in sales (up 4%). Investors may be disappointed that NXP didn’t do better, given the global chip shortage which has raised demand but it seems that the future might be where the returns are.