NXP Semiconductors reports solid Q2 with strong results in automotive

The supply environment "will remain challenging in the near term," the chipmaker warned, even as sales in its automotive segment climbed 87 percent year-over-year.

NXP Semiconductors on Monday reported solid second quarter financial results driven by major year-over-year growth in its automotive segment. 

The company reported net income of $406 million, or $1.42 per diluted share. Total revenue came to $2.6 billion, an increase of 43 percent versus the year-ago period, and better than the mid-point of NXP's guidance. 

Analysts were expecting earnings of $2.31 per share on revenue of $2.58 billion. 

"We continue to be very positive about the long-term demand trends across all our end markets, and while the supply environment will remain challenging in the near term we have taken actions to increase supply which underpin our confidence to drive very robust growth for the remainder of 2021, as well as into 2022," CEO Kurt Sievers said in a statement. 

NXP's automotive business brought in $1.26 billion in revenue, up 87 percent year-over-year and up 3 percent sequentially. Industrial & IoT sales brought in $571 million, up 31 percent year-over-year and flat sequentially.  Mobile revenue came to $347 million, up 36 percent year-over-year and flat sequentially. The "Communications Infrastructure & Other" category brought in $416 million, down 8 percent year-over-year and down 1 percent sequentially.

NXP has a broad portfolio of chips for the automotive sector, powering everything in cars from infotainment systems to tire pressure monitoring systems and V2X (vehicle-to-everything) communications. The automotive industry has been hit hard by the ongoing global shortage of semiconductors.

For the third quarter, NXP expects total revenue between $2.775 billion and $2.925 billion. 

Analysts are expecting revenue of $2.7 billion.