SEMICONDUCTOR: Chipmaker NXP forecasts quarterly revenue below estimates on macroeconomic concerns

Nasdaq-listed shares of NXP fell 5% in trading after the bell.

Enterprises cutting down on spending due to budget constraints in a sluggish economy has impacted the Eindhoven, Netherlands-based chipmaker.

NXP provides manufacturers with chips and other technology essential for high-speed digital processing utilized in sectors like automotive, manufacturing, telecommunications and the Internet of Things (IoT).

“While we experienced some strength against our expectations in the communication infrastructure, mobile and automotive end markets, we were confronted with increasing macro related weakness in the industrial and IoT market,” said CEO Kurt Sievers.

The Dutch firm expects fourth-quarter revenue with a mid-point of $3.10 billion, compared to analysts’ average estimate of $3.36 billion, according to data compiled by LSEG.

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Industrial and IoT revenue fell 7% in the third quarter ended Sept. 29, while mobile revenue was up 8%. Revenue from the automotive segment – NXP’s biggest – fell 3% to $1.83 billion.

NXP posted third quarter revenue of $3.25 billion, in line with analyst estimates.

Chipmaker ON Semiconductor also projected fourth-quarter revenue and profit below Wall Street estimates in October, citing persistent soft demand for semiconductors in the auto sector.