Shares of chip maker NXP Semiconductors and of networking equipment vendor Extreme Networks both jumped in late trading as the two firms raised their forecasts for the quarter just ended.
NXP, which sells a broad line of semiconductors that go into many kinds of devices, but which has especially strong presence in automobile electronics, raised its outlook[1] for revenue for last quarter to $2.27 billion, above the prior view of $2 billion, offered back on July 28th. Analysts have been modeling $2.01 billion.
CEO Kurt Sievers said that NXP "experienced material improvement in demand across all end markets, but particularly in the Automotive and Mobile end markets."
Added Sievers,
Additionally, demand improved in both our direct and distribution channels. The business environment has improved at a faster than anticipated pace, driving a broad-based increase in revenue, which also enabled higher gross margin. Given the improved outlook, we increased operating expenses in relation to non-executive variable incentive compensation, which taken together, resulted in operating profit margin substantially above guidance.
Extreme, meanwhile, raised its outlook[2] for revenue for the quarter, its fiscal first quarter, to $233 million to $236 million, above a prior forecast offered on August 5th for $220 million to $230 million. Earnings per share is now expected in a range of 5 cents to 8 cents, above its prior view of 1 cent to 4 cents.
Analysts have been modeling $223.6 million and 2 cents per share.
NXP plans to release full details on Monday, October 26th, after market close. The company will host a conference call with analysts the following morning, at 8 am, Eastern, which you can catch on the company's investor relations Web site[3].
CEO Ed Meyercord remarked that the "first fiscal quarter outlook improved across a