NXP Semiconductors (NASDAQ:NXPI) shares fell nearly 4% in pre-market today after the company reported a 6% drop in second-quarter revenue, reflecting weakness in its communications, infrastructure, and IoT segments despite a slight earnings beat.
The chipmaker posted adjusted diluted earnings of $2.72 per share on revenue of $2.93 billion. Analysts had expected $2.68 per share on $2.9 billion in revenue. Automotive revenue, NXP’s largest segment, came in roughly flat at $1.729 billion, just below the Street estimate of $1.731 billion.
Sales in the communications and infrastructure division fell 27% year-over-year to $320 million, while industrial and Internet of Things revenue dropped 11%, highlighting softness across several end markets.
For the third quarter, NXP guided for adjusted earnings per share between $2.89 and $3.30 and revenue of $3.05 billion to $3.25 billion. The midpoint of both ranges is slightly above current analyst expectations of $3.03 per share on $3.04 billion in sales, but the outlook reflects continued caution amid sector-specific challenges.
