NXPI Semiconductors (NXPI) – Get Report on Thursday raised its guidance for the third quarter based on better-than-expected performance, particularly in its automotive and mobile end markets.
“Relative to the mid-point of our guidance, we experienced material improvement in demand across all end markets, but particularly in the Automotive and Mobile end markets,” Kurt Sievers, NXP president and CEO, said in a statement.
The company said it sees revenue for the quarter coming in even with a year ago, at $2.267 billion, vs. previous expectations of a 12% decline. It said non-GAAP operating income for the period will be $586 million compared with previous expectations of $444 million.
The company said it had seen improved demand in both its direct and distribution channels. “The business environment has improved at a faster than anticipated pace, driving a broad-based increase in revenue, which also enabled higher gross margin, Sievers said.
The company will release final results for the quarter on Oct. 26.
Shares of NXPI rose $7.17, or 5.3%, to $142.00 in after-hours trading.
In the broader markets, chip stocks rose Thursday.
The Philadelphia Semiconductor Index rose 27.32 points to 2,356.16. Among notable companies in the sector, 26 rose while 3 fell.
ON Semiconductor (ON) – Get Report shares rose $2.69, or 11.5%, to $26.04.
Micron Technology (MU) – Get Report shares rose $1.49, or 3.1%, to $49.90.
Lam Research (LRCX) – Get Report shares rose $9.66, or 2.8%, to $355.43.
Among laggards, Nvidia (NVDA) – Get Report shares fell $5.01, or 0.9%, to $553.55.
Qualcomm (QCOM) – Get Report shares fell 69 cents, or 0.6%, to $122.34.
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