By Dhirendra Tripathi

Investing.com – NXP Semiconductors stock (NASDAQ:NXPI) traded 0.8% higher in premarket Tuesday after the company gave robust guidance for the ongoing quarter, projecting its revenue will grow at least 18% year-on-year to $3.03 billion.

The outlook reflects sustained demand from a range of sectors, further evidence that the boom for semiconductors ushered in by the pandemic is taking longer to fade than many expected.

The company said it has designed processors for automotive, smart home, building and factory applications which automate system behavior based on user needs. Less than two months ago, Ford Motor (NYSE:F) picked NXP networking processors to go into its global fleet.

Adjusted gross margin is seen at 57.3% at the midpoint of its guidance range, wider than 54.2% a year ago, and unchanged from the recent quarter.

“We continue to see growing customer demand, outstripping supply, as inventory across all end markets remains very lean. Taken together, this underpins our continued confidence of robust growth throughout 2022,” a company statement quoted NXP President and Chief Executive Officer Kurt Sievers as saying.

NXP also said it will repurchase shares worth as much as $2 billion and increased its quarterly dividend by 50% to about 85 cents a share. The new share repurchase authorization is in addition to nearly $1.35 billion remaining under the previous exercise.

Fourth-quarter revenue rose more than 21% to top $3 billion. Adjusted profit per share was $4.45, well ahead of estimates.

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