European chipmaker NXP Semiconductors (NXPI) late Monday topped Wall Street’s targets for the first quarter and guided modestly higher for the current period. NXPI stock rose in extended trading.
The Netherlands-based company earned an adjusted $2.31 a share on sales of $2.57 billion in the March quarter. Analysts expected NXP to earn an adjusted $2.21 a share on sales of $2.56 billion. On a year-over-year basis, NXP earnings rose 67% while sales climbed 27%.
“We continue to be encouraged by the long-term demand trends across all our end markets, which underpin our continued confidence of very robust growth throughout 2021,” Chief Executive Kurt Sievers said in a news release.
For the second quarter, NXP expects to generate sales of $2.57 billion, up 41% year over year. Wall Street had predicted NXP sales of $2.56 billion.
Automotive, Industrial Chips Fuel NXP Sales
In after-hours trading on the stock market today, NXPI stock climbed 1.5%, near 208. During the regular session Monday, NXPI stock advanced 1.7% to 205.02.
The largest share of NXP’s revenue comes from sales of chips to the automotive industry. It also makes chips for industrial uses, Internet of Things, mobile and communications infrastructure applications.
In the first quarter, automotive chip sales accounted for 48% of NXP revenue and rose 24% year over year to $1.23 billion. Industrial and Internet of Things chip sales grew the fastest, up 52% year over year to $571 million, or 22% of revenue. Mobile chip sales increased 40% year over year to $346 million, or 13% of total sales.
Automotive semiconductors have been in short supply this year because of tight capacity at chip foundries. The situation has forced some carmakers to idle factories.
NXPI Stock Could Be Forming Ascending Base
NXPI stock has been stair-stepping higher this year. Three times in 2021 it has rebounded off its 50-day moving average line and surged to new record highs. None of these pullbacks were long enough for NXPI stock to form a proper base, however. But the action is quite bullish.
NXPI stock hit its most recent all-time high of 216.43 on April 5 before retreating to its 50-day moving average for the fourth time this year. Last week, it rebounded off the key support level and climbed higher.
Follow Patrick Seitz on Twitter at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
YOU MAY ALSO LIKE: