(Bloomberg) -- NXP Semiconductors NV shares fell the most in four years after its third-quarter guidance disappointed investors.
The Dutch chipmaker predicted revenue of $3.15 billion to $3.35 billion in the period ending in September, the company said Monday in a statement. The midpoint is below analysts’ average estimate of $3.35 billion, according to data compiled by Bloomberg.
The company also projected earnings of $3.21 to $3.63 a share for its September quarter, compared with an average estimate of $3.56 a share.
NXP’s shares slid 8.5% to $259.78 at 10:13 a.m. in New York on Tuesday, having closed at $283.81. The stock saw its biggest intraday slump since April 2020. Prior to Monday’s earnings announcement, the stock had jumped 24% this year.
Semiconductor makers around the world have been struggling in recent quarters to cope with a global inventory glut that has hampered sales. The European Commission has also warned that the region’s chipmakers are at risk of losing substantial market share to China as the Asian nation invests in its own chip-making industry.
Second-quarter revenue dropped 5% to $3.13 billion. Sales at NXP’s largest division, automotive chips, fell 7% from a year earlier. NXP’s results may serve as a bellwether for the semiconductor industry as it reported earnings well before other major chipmakers.
“We continue to manage what is in our control enabling NXP to drive resilient profitability and earnings in a challenging demand environment,” Chief Executive Officer Kurt Sievers said in the statement.
--With assistance from Ian King.
(Updates share price and writes through lede.)
©2024 Bloomberg L.P.
