Shares of NXP Semiconductors (NASDAQ:NXPI) slipped in early U.S. trading on Tuesday following the chipmaker’s report of a 6% decrease in revenue for the second quarter.
The company posted adjusted diluted earnings per share of $2.72 on $2.93 billion in revenue. This slightly exceeded analysts’ expectations, as surveyed by Investing.com, who had forecasted earnings of $2.68 per share on $2.9 billion in revenue.
NXP, which generates the majority of its sales from the automotive sector, reported nearly flat automotive revenue at $1.729 billion, narrowly missing FactSet’s estimate of $1.731 billion.
Looking ahead to the third quarter, the Netherlands-based firm projected adjusted earnings per share between $2.89 and $3.30, with revenue expected in the range of $3.05 billion to $3.25 billion. These forecasts compare with analyst estimates of $3.03 per share and $3.04 billion in revenue.
Sales from NXP’s communication and infrastructure segment tumbled 27% to $320 million, while its industrial and Internet of Things division saw an 11% decline in revenue.
“[O]ur sense is that management will convey material improvement in business trends but with a continued overlay of conservatism given various uncertainties in the market,” Morgan Stanley analysts noted in a report.
Earlier this year, CEO Kurt Sievers remarked that broad U.S. tariffs have created a “very uncertain” operating climate, potentially leading to “volatile direct and indirect effects.”
These remarks followed U.S. President Donald Trump’s announcement in early April of plans to impose heightened “reciprocal” tariffs on several countries globally. Though the White House has since delayed these tariffs, Trump confirmed that they would be reinstated starting August 1.
Additionally, Trump has indicated that specific industries, including semiconductors, could face targeted tariffs.
NXP provides chips and key technologies essential to manufacturers across a wide range of sectors, from automotive to telecommunications.
NXP Semiconductors stock price
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