Chip manufacturer NXP Semiconductors (NASDAQ: NXPI) will be reporting results tomorrow after market close. Here’s what to look for.
NXP Semiconductors met analysts’ revenue expectations last quarter, reporting revenues of $3.25 billion, down 5.4% year on year. It was a mixed quarter for the company, with a narrow beat of analysts’ adjusted operating income estimates.
Is NXP Semiconductors a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting NXP Semiconductors’s revenue to decline 9.4% year on year to $3.1 billion, a reversal from the 3.3% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $3.13 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. NXP Semiconductors has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 1.2% on average.
Looking at NXP Semiconductors’s peers in the semiconductors segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Texas Instruments’s revenues decreased 1.7% year on year, beating analysts’ expectations by 3.3%, and Teradyne reported revenues up 12.3%, topping estimates by 1.4%. Texas Instruments traded down 7.5% following the results while Teradyne was also down 5.7%.
Read our full analysis of Texas Instruments’s results here and Teradyne’s results here.
Inflation has progressed towards the Fed’s 2% goal as of late, leading to strong stock market performance. Recent rate cuts and the 2024 Presidential election's conclusion added further sparks to the market, and while some of the semiconductors stocks have shown solid performance, the group has generally underpeformed, with share prices down 3.2% on average over the last month. NXP Semiconductors is down 2.3% during the same time and is heading into earnings with an average analyst price target of $262.41 (compared to the current share price of $208.43).
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