Feb 2 (Reuters) - NXP Semiconductors on Monday forecast first-quarter revenue above Wall Street estimates, anticipating a robust automotive market and consistent industrial demand.
The supplier of microcontrollers and radar sensors is benefiting from increased demand for its secure connectivity chips, which are critical components in modern vehicles and factory automation systems.
"Throughout 2025, we executed effectively despite a challenging first half, maintaining operational discipline while advancing our strategic priorities in software-defined vehicles and physical AI," said Rafael Sotomayor, NXP President and Chief Executive Officer.
NXP derives roughly 55% of sales from the automotive end market and roughly 18% of sales from the industrial end market.
However, shares of the company fell around 5% in extended trading. Revenue in the firm's communication unit fell 18% in the fourth quarter, pointing to sluggish spending by telecom operators.
NXP expects revenue to be between $3.05 billion and $3.25 billion for the first quarter, the midpoint of which is above analysts' average estimate of $3.10 billion, according to data compiled by LSEG.
The company forecast quarterly adjusted earnings per share of between $2.77 and $3.17, with a midpoint of $2.97, above estimates of $2.90 per share.
It posted revenue of $3.34 billion for the fourth quarter, compared with the estimates of $3.31 billion. Its adjusted earnings of $3.35 per share were above analysts' expectations of $3.27.
(Reporting by Juby Babu in Mexico City and Zaheer Kachwala in Bengaluru; Editing by Vijay Kishore)
