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Investing.com - Shares in NXP Semiconductors (NASDAQ:NXPI) fell in premarket U.S. trading on Tuesday after the chipmaker posted a 6% drop in group-wide second-quarter revenue.
Adjusted diluted earnings per share came in at $2.72 on revenue of $2.93 billion. Analysts polled by Investing.com had anticipated per-share income of $2.68 on revenue of $2.9 billion.
The company, which makes the bulk of its revenue from the car industry, reported roughly flat automotive revenue of $1.729 billion, just missing FactSet estimates of $1.731 billion.
For the third quarter, Netherlands-based NXP guided for adjusted per-share profit in the range of $2.89 to $3.30 and revenue of $3.05 billion to $3.25 billion, compared to analysts’ estimates of $3.03 a share and $3.04 billion, respectively.
Revenue from NXP’s communication and infrastructure segment slumped by 27% to $320 million, while sales at its industrial and Internet of Things division dropped 11%.
"[O]ur sense is that management will convey material improvement in business trends but with a continued overlay of conservatism given various uncertainties in the market," analysts at Morgan Stanley (NYSE:MS) said in a note.
CEO Kurt Sievers said earlier this year sweeping U.S. levies have contributed to a "very uncertain" operating environment that could have "volatile direct and indirect effects."
The comments came after U.S. President Donald Trump announced in early April plans to slap elevated "reciprocal" tariffs on countries around the world. He has since partially backed away from this threat by delaying the tariffs, but has said the duties will snap back into place on August 1.
Meanwhile, Trump has also suggested he could place tariffs on a number of specific sectors, including the semiconductor industry.
NXP supplies chips and other essential technologies to manufacturers involved in everything from automotive production to telecommunications.
(Yasin Ebrahim contributed reporting.)