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Chip manufacturer NXP Semiconductors (NASDAQ: NXPI) will be announcing earnings results this Monday after market hours. Here’s what to look for.
NXP Semiconductors met analysts’ revenue expectations last quarter, reporting revenues of $3.17 billion, down 2.4% year on year. It was a mixed quarter for the company, with revenue guidance for next quarter topping analysts’ expectations but EPS in line with analysts’ estimates.
Is NXP Semiconductors a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting NXP Semiconductors’s revenue to grow 6.5% year on year to $3.31 billion, a reversal from the 9.1% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $3.31 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 0.4% 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 delivered year-on-year revenue growth of 10.4%, missing analysts’ expectations by 0.8%, and Western Digital reported revenues up 25.2%, topping estimates by 2.2%. Texas Instruments traded up 9.2% following the results while Western Digital was down 11.9%.
Read our full analysis of Texas Instruments’s results here and Western Digital’s results here.
There has been positive sentiment among investors in the semiconductors segment, with share prices up 12.1% on average over the last month. NXP Semiconductors is up 2.1% during the same time and is heading into earnings with an average analyst price target of $264.83 (compared to the current share price of $225.97).
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