(Bloomberg) — NXP Semiconductors NV, a major chip supplier to the automotive industry, gave a bullish revenue forecast for the current period.
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The Dutch company said fourth-quarter revenue will be $2.93 billion (2.5 billion euros) to $3.08 billion as global chip shortages continue to drive sales. That compares with the $2.91 billion average estimate from analysts surveyed by Bloomberg.
“We continue to take additional actions to assure supply to our customers, which underpins our continued confidence in robust growth in the remainder of 2021 and through 2022,” Chief Executive Officer Kurt Sievers said Monday in a statement.
Key Insights
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NXP reported third-quarter revenue of $2.9 billion, up 26% from a year earlier.
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Sievers said in April that supply would likely remain tight for the remainder of 2021 with a constraint in auto chips lasting until 2022.
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The gap between putting in a semiconductor order and taking delivery rose another five days in September to an average of 21.7 weeks, according to research by Susquehanna Financial Group.
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NXP may provide more detail in its 2022 outlook when it hosts its investor day Nov. 11.
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The automotive industry has been particularly hard hit. On Monday, Jaguar Land Rover’s Indian owner Tata Motors Ltd. posted a bigger-than-expected loss in its second quarter as the global semiconductor shortage stymied production at home
Market Reaction
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NXP shares declined abut 1% in extended trading after closing at $205.13 in New York. The stock has gained 29% this year, just above a 25% rise for the Philadelphia Stock Exchange Semiconductor Index.
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