NXP Semiconductors (NXPI) 2020 Q4 Earnings Results

NXP Semiconductors NV (NASDAQ:NXPI) is famous for manufacturing connectivity chips for a range of industries such as automotive and mobile communications. Moreover, it also develops driving-assist systems and battery management devices for electric vehicles (EVs). Unlike most chip makers that outsource manufacturing, NXP manages both the design and manufacturing of semiconductors in-house.

The Eindhoven, Netherlands-based company on Monday announced strong financial results for the fourth quarter. NXP reported a profit of $309 million, or $1.08 per share for the three months ended Dec. 31, well above 40 cents per share in the comparable period of 2019. Analysts on average were looking for a profit of 89 cents per share.

Revenue for the quarter came in at $2.51 billion, as compared to $2.3 billion in the same period one year ago, and above the consensus forecast of $2.46 billion. Strong demand from automotive and mobile industries mainly drove the results, according to NXP.

The company’s CEO Kurt Sievers said in a statement, “As we entered the second half of 2020, and our customers began to re-open, NXP experienced a very robust rebound in demand, which we anticipate continuing throughout 2021.”

NXP also offered a solid revenue outlook for the first quarter. It expects to generate revenue in the range of $2.48 billion to $2.63 billion for the current quarter, above the consensus forecast of $2.33 billion.

NXP shares jumped 6.89 percent to $171.53 on Monday following impressive quarterly results and upbeat revenue guidance. NXP stock performed well over the past year despite a difficult operating environment due to the pandemic. The stock advanced about 35 percent during the past 12 months, and about 8 percent so far in 2021.