NXP’s Soft Demand Environment

Today is Tuesday, January 31, 2023.

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NXP’s Soft Demand Environment

A bad financial outlook sent shares of NXP Semiconductors (Nasdaq: NXPI) down 3.16% in after-hours trading on Monday.

Financials: NXP Semiconductors reported earnings of $2.76 per share in the quarter, which was below estimates. But revenue hit $3.31 billion, which was better than expected.

Details: While the company’s automotive business performed very well, the consumer IoT and mobile businesses “experienced a softening demand environment through the second half of 2022.” There are still some customers who are experiencing material shortages.

Outlook: In the first quarter of 2023, NXP Semiconductors expects revenue to be between $2.9 billion to $3.1 billion and earnings per share to be between $2.12 to $2.51; both were below estimates.

Stock Price: NXP Semiconductor’s stock is down 12% over the last 12 months, but is up 15% in the last 30 days.

Final Thoughts: While it is great that NXP Semiconductor grew its revenue by 9% and boosted its dividend by 20%, the large macroeconomic issues in the chip space are hurting the company.


Notable Earnings Today: Advanced Micro Devices (Nasdaq: AMD), Exxon Mobil (NYSE: XOM), UPS (NYSE: UPS), Snap (NYSE: SNAP), General Motors (NYSE: GM), Super Micro Computer (Nasdaq: SMCI), Pfizer (NYSE: PFE), Amgen (Nasdaq: AMGN), Caterpillar (NYSE: CAT), Mondelez International (Nasdaq: MDLZ), McDonald's (NYSE: MCD), Electronic Arts (Nasdaq: EA), Spotify Technology (NYSE: SPOT), Edwards Lifesciences (NYSE: EW), Phillips 66 (NYSE: PSX), Chubb (NYSE: CB), Marathon Petroleum (NYSE: MPC), Stryker (NYSE: SYK), Corning (NYSE: GLW), Match Group (Nasdaq: MTCH), Helmerich & Payne (NYSE: HP), A.O. Smith (NYSE: AOS), Ashland (NYSE: ASH), Boston Properties (NYSE: BSX), Canadian Pacific (NYSE: CP), Dover (NYSE: DOV), Hawaiian Holdings (Nasdaq: HA), International Paper (NYSE: IP), Juniper Networks (NYSE: JNPR), Pitney Bowes (NYSE: PBI), PulteGroup (NYSE: PHM), Sysco (NYSE: SYY), Western Digital (Nasdaq: WDC).

Notable IPOs Today: N/A.

Notable Equity Crowdfunding Campaigns Ending Today: Taylor Consulting (TruCrowd), Endo (Mainvest), FloSpine (StartEngine), Joule Case (Wefunder), heywell (Republic), Arka (Republic), AlgenAir (Republic), Scripx Pharmacy & Health (Republic), Berylline (Netcapital).

Notable Economic Events Today: Employment Cost Index (8:30 a.m. ET), S&P/CS HPI Composite (9:00 a.m. ET), Chicago PMI (9:45 a.m. ET), CB Consumer Confidence (10:00 a.m. ET), API Weekly Crude Oil Stock (4:30 p.m. ET).

Whirlpool Predicts Solid 2023

Photo by Sidekix Media / Unsplash

The financial results for Whirlpool (NYSE: WHR) included a positive 2023 forecast, sending shares up 2.42% in after-hours trading on Monday.

Financials: Whirlpool reported earnings of $3.89 per share in the quarter, which was better than expected. Revenue in the quarter reached $4.92 billion, which was expected.

The Problem: Net sales dropped 1% in the quarter due to supply disruption in North America and a demand slowdown.

But: Whirlpool expects to have earnings per share between $16.00 to $18.00 in 2023 and a free cash flow of $800 million thanks to cost cuts and the easing of raw material inflation.

Final Thoughts: Down 26% in the past year, Whirlpool’s plan to turn things around is off to a good start.

Bitcoin Falls as January Ends

Despite a strong start to the year, the price of Bitcoin dropped over 3% on Monday for its lowest daily drop since November.

Final Thoughts: The drop in Bitcoin on Monday is largely due to economic jitters with the Fed meeting this week.

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Trends to Watch

Panic Mode: The U.S. Consumer Is Starting to Freak Out (The Wall Street Journal)

Slashing Prices: Ford Follows Tesla in Cutting Electric Vehicle Prices (The New York Times)

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