Business Corpus: NXP Semiconductors Pops On Third-Quarter Earnings BeatNXP Semiconductors beat Wall Street's targets for the third quarter and provided reassuring guidance for the current quarter. NXP stock jumped nearly 10%. The post NXP Semiconductors Pops On Third-Quarter Earnings Beat appeared first on Investor's Business Daily.

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NXP Semiconductors (NXPI) beat Wall Street's targets for the third quarter and provided reassuring guidance for the current quarter. That news sent NXP stock higher on Thursday.

The Dutch chipmaker earned an adjusted $2.01 a share on sales of $2.45 billion in the September quarter. Analysts expected it to earn $1.90 a share on sales of $2.42 billion. On a year-over-year basis, earnings per share rose 9% while sales climbed 2%.

Chips for Apple's (AAPL) new iPhones and for 5G wireless installations helped NXP offset weakness in automotive and bank card markets last quarter.

Netherlands-based NXP Semiconductors makes mixed-signal processors for automotive, Internet of Things, identification technology and other markets.

NXP Stock: Earnings Outlook Better Than Expected

For the current quarter, it expects to earn an adjusted $2.09 a share on revenue of $2.39 billion. Wall Street was modeling NXP to earn $1.95 a share on sales of $2.41 billion in the December quarter.

NXP's revenue guidance is also better than some had feared, Mizuho Securities analyst Vijay Rakesh said in report. Multiple concerns have weighed on the stock, including "automotive slowdowns, microcontroller slowdowns and China exposure with weakening industrial," he said. Rakesh rates NXP stock as buy with a price target of 115.

NXP stock jumped 12.1% to 84.09 on the stock market today.

It hit a record high of 125.93 on Feb. 20 while it was a takeover target of Qualcomm (QCOM). The Chinese government effectively killed the $44 billion acquisition by failing to give its approval for the deal after 22 months. Qualcomm abandoned its plan to buy NXP on July 25.

SunTrust Robinson Humphrey analyst William Stein reiterated his buy rating on NXP stock with a price target of 112.

"Shares have compelling value here as cost savings and buybacks appear to be at least offsetting cyclical pain, and the bearish concern of channel inventories remains benign," he said in a report Thursday.

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