Why NXP Semiconductors Shares Jumped

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of NXP Semiconductors (NASDAQ: NXPI  ) jumped by more than 13% during intraday trading Thursday after the company reported solid quarterly earnings results.

So what: Quarterly revenue rose 8.3% to $1.249 billion. Meanwhile, adjusted earnings grew by an impressive 39% to $0.85 per share. For reference, though analysts were looking for slightly higher revenue of $1.26 billion, NXP actually beat lofty earnings expectations by $0.03 per share.

Going forward, NXP also issued guidance for revenue in the range of $1.189 million to $1.256 million, and non-GAAP earnings per share in the range of $0.85 to $1.02, with the midpoint of both ranges coming in slightly ahead of expectations.

Now what: Remember, only a few weeks ago I singled out NXP's potential as a hidden winner from the subtle inclusion of one of its products in Apple's new iPhone 5s. As it stands, however, nearly all of NXP's core High Performance Mixed Signal segments recorded record revenue in the quarter, showing the company doesn't need to rely overwhelmingly on any single market to drive its business.

All in all, though shares may look expensive on the surface, trading around 104 times last year's earnings, remember they also sit at just 10 times next year's estimates. That's why, if NXP can maintain this momentum going forward, I think patient long-term investors should stand to be handsomely rewarded.

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