Finance
Why NXP Semiconductors Stock Was Flying High This Week
According to data compiled by S&P Global Market Intelligence, NXP Semiconductors (NASDAQ: NXPI) shares were up by almost 20% week to date as of early Friday afternoon. It wasn’t hard to see why — the global chipmaker did well in its first quarter, with robust top and bottom-line growth and key fundamentals that beat analyst estimates.
NXP took the wraps off the quarter after market hours on Tuesday. The company’s figures revealed that it grew revenue by 12% year over year to nearly $3.2 billion, and net income not under generally accepted accounting principles (GAAP) by 15% to $774 million. Both results were higher than their corresponding consensus analyst estimates.
Image source: Getty Images.
The chipmaker published a satisfying earnings release.
According to data compiled by S&P Global Market Intelligence, NXP Semiconductors (NXPI 0.64%) shares were up by almost 20% week to date as of early Friday afternoon. It wasn’t hard to see why — the global chipmaker did well in its first quarter, with robust top and bottom-line growth and key fundamentals that beat analyst estimates.
A quarter that pleased investors and pundits alike
NXP took the wraps off the quarter after market hours on Tuesday. The company’s figures revealed that it grew revenue by 12% year over year to nearly $3.2 billion, and net income not under generally accepted accounting principles (GAAP) by 15% to $774 million. Both results were higher than their corresponding consensus analyst estimates.
Image source: Getty Images.
The company’s chips are used in numerous and varied technologies across an admirable range of high-growth segments, including next-generation assisted driving solutions for the automotive industry. Management cited automotive as one source of growth during the quarter.
More than a few analysts tracking NXP stock found the first-quarter results encouraging enough to boost their price targets on the stock. One of those more bullish raisers was Cantor Fitzgerald’s Matthew Prisco, who made a heavy lift from $280 per share to $340, and maintained his buy recommendation on the shares. For the most part, those pundits kept their optimistic views intact.
NXP Semiconductors
Today’s Change
(-0.64%) $-1.89
Current Price
$291.70
More growth in store, for sure
I like the way NXP targets high-potential clientele like those auto makers, plus businesses such as smartphone makers, data center operators, and Internet of Things (IoT) specialists. While it doesn’t just jump into any old market niche, it’s diversified enough to take advantage of one or more of those niches if they surge.
I don’t think this will be the last time we see double-digit fundamental improvements from this company, and I’d be quite bullish on its future.