NXP Semiconductors Forecasts Q4 Profit Above Estimates, Citing Resilient Auto and Industrial Demand Despite Volatile Stock Movement

Q4 revenue range is set between $3.3 billion and $3.5 billion eclipising analysts' estimate of $3.43 billion, while strong demand for iPhone and a rejuvenated smartphone market, suggest sustained earnings despite softening EV demand and weaker than expected performance of the company's communication infrastructure business.

• NXP Semiconductors predicts a higher Q4 profit, banking on resilient demand in the automotive and industrial sectors, despite weaker performance in the communication infrastructure business.
• The company's Q4 revenue range estimate of $3.3 to $3.5 billion surpasses analysts' estimate of $3.43 billion, suggesting sustained earnings amid softening EV demand.
• Strong demand for iPhones, attributed to NXP's near-field communications chip incorporated in the devices for mobile payments and other functions, signals a continuation of robust earnings.
• Despite a year-on-year dip of 8% in the mobile segment revenue in the quarter ended October 1, a 33% sequential rise indicates a recovery in smartphone demand.
• NXP Semiconductors has been able to protect its profits by passing on rising costs to customers, a strategy perceived effective in counteracting weakness in other key markets.

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