What happened

Shares of NXP Semiconductors (NASDAQ:NXPI) gained 11.2% in November 2018, according to data from S&P Global Market Intelligence. The maker of embedded chips and automotive computing solutions started the month with a strong earnings report and never looked back.

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So what

NXP's third-quarter revenues grew 2.4% year over year to $2.45 billion. Unadjusted earnings spiked to $5.60 per share, up from $1.69 per share in the year-ago period, but that result included a $2 billion deal termination fee from Qualcomm (NASDAQ:QCOM) that won't be repeated. Without that unique item and the associated tax effects, adjusted earnings would have landed near $2.25 per share.

The analyst consensus was calling for earnings near $1.90 per share on top-line sales in the neighborhood of $2.42 billion. NXP surged right past the earnings target with or without the Qualcomm payment, and the revenue result provided a milder surprise. The stock closed 12.1% higher that day.

Now what

NXP is showing why Qualcomm wanted to own the company in the first place. The company has a bright future thanks to its market-leading position in automotive computing, and Qualcomm's $1.7 billion termination fee -- after taxes -- can only help NXP accelerate its research and share buybacks.

Anders Bylund owns shares of NXP Semiconductors. The Motley Fool owns shares of Qualcomm. The Motley Fool recommends NXP Semiconductors. The Motley Fool has a disclosure policy.