NXP Semiconductors reports solid Q2 with strong results in automotive

NXP Semiconductors on Monday reported solid second quarter financial results driven by major year-over-year growth in its automotive segment. 

The company reported net income of $406 million, or $1.42 per diluted share. Total revenue came to $2.6 billion, an increase of 43 percent versus the year-ago period, and better than the mid-point of NXP’s guidance. 

Analysts were expecting earnings of $2.31 per share on revenue of $2.58 billion. 

“We continue to be very positive about the long-term demand trends across all our end markets, and while the supply environment will remain challenging in the near term we have taken actions to increase supply which underpin our confidence to drive very robust growth for the remainder of 2021, as well as into 2022,” CEO Kurt Sievers said in a statement. 

NXP’s automotive business brought in $1.26 billion in revenue, up 87 percent year-over-year and up 3 percent sequentially. Industrial & IoT

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Monthly Car Sales Can Keep Going Strong. So Can Car Stocks.

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New Subaru cars parked on a storage lot in California.

Justin Sullivan/Getty Images

Investors will get another number after Wednesday’s close that they should consider acting on—monthly U.S. auto sales.

May’s number will be solid if the figure from April is any indication. April’s total for light vehicles—monthly sales are reported as a seasonally adjusted annual rate, or SAAR—came in at 18.5 million, the highest reading since 2005, according to data available on Bloomberg.

That level shows demand is strong, despite a worldwide automotive semiconductor shortage that is limiting the supply of new vehicles—and driving car prices higher. In turn, the higher prices are pushing up auto stocks, a dynamic that can last longer than investors might expect.

Constrained production caused by the chip shortage, along with rising prices for commodities used in cars, sound like a recipe for stock market disaster. The cost of copper,

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