By Maria Armental
Dutch chipmaker NXP Semiconductors NV is on track for a record closing, a day after boosting financial projections for the September quarter on improved demand, particularly from automobile and mobile.
Shares are trading 4.3% higher at $140.62, on track to beat Feb. 13's $138.69 closing record.
The company, which is slated to report third-quarter results on Oct. 26, said it now expects to report an operating profit of about $32 million and about $2.27 billion in revenue for the quarter ended Sept. 27. It had previously projected a $12 million operating profit at the high end of its projection and a $105 million operating loss at the low end and $1.9 billion to $2.1 billion in revenue.
"The business environment has improved at a faster-than-anticipated pace, driving a broadbased increase in revenue, which also enabled higher gross margin," Chief Executive Kurt Sievers said in a statement.
Company officials had pointed to broad-based disruption as customers' manufacturing facilities shut down to help curb the spread of the coronavirus pandemic.
Raymond James Financial Inc.'s analysts raise their price target to $150 from $130.
"The upside was substantial, with particular strength in auto and mobile, echoing the commentary from STM's preannouncement last week," the analysts wrote in a note.
STMicroelectronics NV, which is slated to report third-quarter results on Oct. 22, similarly pointed to a stronger-than-expected third-quarter performance driven by a sharp demand acceleration for automotive products and microcontrollers.
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(END) Dow Jones Newswires