For the three months that ended on September 29, Netherlands-based NXP Semiconductors reported adjusted diluted earnings per share of USD 3.45 and revenue of USD 3.25 billion. Analysts polled by investing.com had called for adjusted EPS of USD 3.43 and revenue of USD 3.25B, respectively.

The company’s automotive chip business continued to drag on performance, with recorded revenue of USD 1.83 billion in the third quarter, down 3% year-on-year. The Industrial & IoT (Internet of Things) segment, the second largest unit, saw revenue decline 7% year-on-year to USD 563 million, reflecting increasing macro-related weakness in this sector.

The Mobile segment was the sole unit showing annual growth, with revenue up 8% year-on-year to USD 407 million.

For the fourth quarter, NXP Semiconductors guided adjusted EPS in a range of USD 2.93-3.33 on revenue between USD 3.00-3.20 billion. That compared with estimates for adjusted EPS of USD 3.65 on revenue of USD 3.34 billion.

“Although Q4 guides have been widespread within the broader semiconductor sector, the magnitude of NXPI’s guidance for that quarters expected to prove disappointing,” Deutsche Bank analysts said.

They also believe the primary focus of the tech venture’s earnings call will be on “the drivers of this soft guide, the likely duration of it, as well as the gross margin implications.”

“Beyond these near-term dynamics, we expect most long-term questions to be answered during the company’s upcoming analyst meeting,” analysts led by Ross Seymore added.

Separately, Morgan Stanley analysts view NXPI’s Q3 2024 print “as confirmation that automotive weakness will be a multi-quarter trend.”

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