synopsis

Automotive revenue, which accounted for 59% of the total revenue, saw a 7% decline from the year-ago quarter and a 6% drop from the preceding one.

NXP Semiconductor, Inc. (NXPI) shares fell over 7% after the closing bell on Monday as the Dutch chip company announced a management transition.

The company's quarterly results beat expectations, but it warned of challenging market conditions, which were underpinned by the direct and indirect impact of U.S. tariffs.

The company said President and CEO Kurt Sievers will retire at the end of 2025 following a 30-year stint at NXP. It announced that Rafael Sotomayor, a company insider, will take over the CEO role, effective April 28, even as Sievers will stay on to assist with the transition.

The chipmaker, which supplies the automotive, industrial, Internet of Things (IoT), mobile, and communications infrastructure end markets, reported adjusted earnings per share (EPS) of $2.64 and revenue of $2.84 billion for the first quarter of the fiscal year 2025.

That exceeded the Finchat-compiled consensus estimates of $2.60 and $2.83 billion. The revenue was in line with the midpoint of the company's guidance.

However, the headline numbers declined from the $3.24 EPS and $3.13 billion revenue reported a year ago. Sequentially, EPS and revenue fell by 9%, and adjusted EPS declined by 17%.

All major end markets reported declining year-over-year (YoY) and quarter-over-quarter (QoQ) revenue.

Automotive revenue, which accounted for 59% of the total revenue, fell 7% decline from the year-ago quarter and 6% from the prior quarter.

The non-GAAP gross margin contracted nearly two percentage points to 56.1%.

Looking ahead, NXP guided to second-quarter adjusted EPS of $2.46 to $2.86 and revenue of $2.80 billion to $3.00 billion, versus the consensus estimates of $2.65 and $2.86 billion, respectively.

Sievers said, "NXP's first-quarter results and guidance for the second quarter underpin a cautious optimism that NXP continues to effectively navigate through a challenging set of market conditions."

"We are operating in a very uncertain environment influenced by tariffs with volatile direct and indirect effects. Considering these external factors, we are redoubling our efforts to manage what is in our direct control, enabling NXP to drive solid profitability and earnings."

On Stocktwits, sentiment toward NXP stock toned down to 'bullish' (69/100) by late Monday from the 'extremely bullish' mood a day ago, with the message volume perking up to 'extremely high' levels.

NXPI sentiment and message volume as of 9:51 p.m. ET, April 28 | Source: Stocktwits

A bullish watcher saw the stock as a bargain buy. "Free money to get this now, 190 by pre-market," they said.

Another user called the post-market sell-off an overreaction.

NXP stock has shed 5% so far this year. The Koyfin-compiled consensus analysts' price target for the stock is $240.48, implying a 23% upside from Monday's close.

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