NXP Semiconductors has announced an optimistic outlook for Q2, surpassing market expectations as it bets on a gradual recovery in its core segments. The group projects revenue of between $3.35bn and $3.55bn, ahead of the $3.27bn anticipated by analysts. Adjusted EPS is expected between $3.29 and $3.72, also beating the $3.17 forecast. Following this guidance hike, NXP shares jumped over 20% in early trading.

This improvement is thanks to a recovery in orders within the industrial and automotive sectors, following a period marked by a slowdown and high inventory levels amongst customers. With inventories gradually getting back to normal, this is enabling demand to restart, thereby supporting the group's operations. This positive trend is part of a broader sector recovery, also seen at other players such as Texas Instruments.

NXP recorded Q1 revenue of $3.18bn, slightly above the $3.16bn expected. Adjusted EPS reached $3.05, above an estimate of $2.95.