NXP Semiconductors NV (NASDAQ: NXPI) saw its shares plummet 5.49% on Monday, following the release of its second-quarter earnings report that showed a decline in revenue and provided a mixed outlook for the third quarter. The semiconductor manufacturer's stock closed at $228.27 in regular trading but fell sharply in after-hours trading.

The company reported second-quarter revenue of $2.93 billion, marking a 6.4% decrease from $3.13 billion in the same period last year. Despite the decline, this narrowly beat analyst expectations of $2.90 billion. Adjusted earnings per share came in at $2.72, surpassing the analyst consensus of $2.67 but falling short of the $3.20 reported in Q2 2024. The company's adjusted gross margin stood at 56.5%, while the adjusted EBIT margin was 32%.

NXP's performance was particularly weak in its communications and infrastructure segment, which saw a 27% decline in revenue to $320 million. The industrial and IoT segment also experienced an 11% drop, while the automotive segment remained flat. These results reflect the broader market softness affecting the semiconductor industry. Kurt Sievers, NXP's CEO, noted "an emerging cyclical improvement in NXP's core end markets," potentially signaling better performance in the future.

For the third quarter, NXP provided a revenue guidance range of $3.05 billion to $3.25 billion, with the midpoint slightly above analyst estimates of $3.07 billion. The company's Q3 adjusted EPS guidance of $2.89 to $3.30 encompasses the analyst estimate of $3.06. The wide range in the guidance and the lower end matching analyst expectations may have contributed to investor uncertainty and the stock's after-hours decline. As the semiconductor industry continues to navigate challenging market conditions, investors will be closely watching NXP's performance in the coming quarters for signs of recovery.