RTTNews | Oct 8, 2020 04:56PM EDT

16:56 Thursday, October 8, 2020 (RTTNews.com) - Shares of NXP Semiconductors N.V. (NXPI) gained over 5% on Thursday after the company lifted its third-quarter revenue outlook.

Looking forward to the third quarter, the company now expects revenues of $2.27 billion, up from previous outlook of $2.00 billion. Analysts polled by Thomson Reuters currently estimate revenues of $2.00 billion.

"Relative to the mid-point of our guidance, we experienced material improvement in demand across all end markets, but particularly in the Automotive and Mobile end markets. Additionally, demand improved in both our direct and distribution channels. The business environment has improved at a faster than anticipated pace, driving a broad-based increase in revenue, which also enabled higher gross margin. Given the improved outlook, we increased operating expenses in relation to non-executive variable incentive compensation, which taken together, resulted in operating profit margin substantially above guidance," said Kurt Sievers, NXP President and Chief Executive Officer.

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