Kurt Sievers, CEO of NXP Semiconductors, during the Federation of German Industries conference in Berlin, Germany, on June 19, 2023.
Liesa Johannssen-Koppitz | Bloomberg | Getty Images
NXP Semiconductors fell about 7% on Monday after the chip company announced CEO Kurt Sievers would step down and released first-quarter earnings for fiscal 2025.
Sievers will retire at the end of the year, with Rafael Sotomayor stepping in as president on April 28, 2025.
Here’s how the company did, versus LSEG consensus estimates:
- Earnings per share: $2.64 adjusted vs. $2.58 expected
- Revenue: $2.84 billion vs. $2.83 billion expected
While the company beat expectations on the top and bottom lines, Sievers cited a “challenging set of market conditions” looking forward.
“We are operating in a very uncertain environment influenced by tariffs with volatile direct and indirect effects,” Sievers said in an earnings release.
Sales in NXP’s first quarter declined 9% year over year.
The company posted $1.67 billion in auto sales during the first quarter, trailing analysts’ estimates of $1.69 billion.
NXP Semiconductors said second-quarter sales would come in at a midpoint of $2.9 billion, ahead of the $2.87 billion that analysts were projecting. Second-quarter adjusted earnings per share is expected to be $2.66, in line with analysts’ estimates.
The company logged first-quarter net income of $490 million, which was a 23% year-to-year drop from $639 million.
NXP Semiconductors’ net income per share was $1.92 compared to $2.47 during the same time a year ago, a drop of 22%.
The company said Sievers’ retirement was a “personal decision” and there were no issues with the board or performance of the company.
