NXP Semiconductors N.V. (NASDAQ: NASDAQ:NXPI) experienced an 8% decline in its stock price following the announcement of its second-quarter results.
The chip company reported an adjusted EPS of $3.20 for the quarter, just a cent shy of the consensus estimate of $3.21. Revenue for the quarter was in line with expectations at $3.13 billion but marked a 5% decrease from the same quarter last year.
NXP's President and CEO, Kurt Sievers, commented on the results, stating, "With our second quarter results and guidance for the third quarter, NXP has successfully navigated the cyclical trough in our businesses and we expect to resume sequential growth."
He highlighted the company's focus on managing elements within its control to maintain resilient profitability and earnings amidst challenging demand conditions.
The semiconductor company provided third-quarter earnings guidance ranging from $3.21 to $3.63, with the midpoint falling below the analyst consensus of $3.61.
Revenue forecasts for the upcoming quarter are also projected to be between $3.15 billion and $3.35 billion, which is below the consensus estimate of $3.35 billion.
The second quarter witnessed a 5% year-on-year (YoY) revenue decline, which the company attributed to the cyclicality of its end markets.