We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
NXP (NXPI) Gears Up for Q4 Earnings: What's in the Cards?
Read MoreHide Full Article
NXP Semiconductors (NXPI - Free Report) is slated to report fourth-quarter 2020 results on Feb 1. In the last reported quarter, it delivered an earnings surprise of 6.9%.
For the to-be-reported quarter, the Zacks Consensus Estimate for earnings is pegged at $2.11 per share. This indicates a decline of 12.5% from the year-ago reported figure.
The consensus mark for revenues is pegged at $2.47 billion, implying growth of 7.1% from the year-ago reported figure.
Let’s see how things have shaped up prior to the earnings announcement.
Factors to Consider
NXP's diversified product portfolio is expected to have been a key catalyst. Its leading market position and focus on communications infrastructure, automotive and industrial, as well as IoT markets could have positively impacted top-line numbers.
The company is expected to have witnessed an improved business environment due to strength in end-markets served, particularly in Automotive and Mobile. Additionally, it is expected to have seen improved demand in both direct and distribution channels.
Therefore, revenues and gross margin are expected to have expanded in the to-be-reported quarter.
During the quarter, it made continuous efforts to develop an improved 5nm design strategy, with an aim of increasing software performance required in future cars.
Growing adoption of NXP’s offerings is expected to have strengthened the company’s presence in the automotive market. Moreover, the ongoing digital transformation across the auto vertical is expected to have been a major catalyst in the quarter.
For the quarter to be reported, the company anticipates revenues of $$2.45 billion, indicating an increase of 8% sequentially and 6% year over year, citing strength in end markets served, particularly automotive and mobile.
On a non-GAAP basis, it expects gross margin of 52.7% and non-GAAP operating margin of 29.7%.
However, the global coronavirus-driven economic crisis has been raising volatility in the semiconductor market. This is likely to pose a challenge to the upcoming quarterly results.
Our proven model predicts an earnings beat for the company this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
Currently, NXP has a Zacks Rank #3 and an Earnings ESP of +1.30%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Other Stocks That Warrant a Look
Here are a couple of other stocks that you may also want to consider, as our model shows that these too have the right combination of elements to post an earnings beat in the quarter to be reported.
Microchip Technology Incorporated (MCHP - Free Report) has an Earnings ESP of +1.14% and a Zacks Rank #2.
Facebook has an Earnings ESP of +0.32% and a Zacks Rank #3.
Just Released: Zacks’ 7 Best Stocks for Today
Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.4% per year.
These 7 were selected because of their superior potential for immediate breakout.
Image: Bigstock
NXP (NXPI) Gears Up for Q4 Earnings: What's in the Cards?
NXP Semiconductors (NXPI - Free Report) is slated to report fourth-quarter 2020 results on Feb 1. In the last reported quarter, it delivered an earnings surprise of 6.9%.
For the to-be-reported quarter, the Zacks Consensus Estimate for earnings is pegged at $2.11 per share. This indicates a decline of 12.5% from the year-ago reported figure.
The consensus mark for revenues is pegged at $2.47 billion, implying growth of 7.1% from the year-ago reported figure.
Let’s see how things have shaped up prior to the earnings announcement.
Factors to Consider
NXP's diversified product portfolio is expected to have been a key catalyst. Its leading market position and focus on communications infrastructure, automotive and industrial, as well as IoT markets could have positively impacted top-line numbers.
The company is expected to have witnessed an improved business environment due to strength in end-markets served, particularly in Automotive and Mobile. Additionally, it is expected to have seen improved demand in both direct and distribution channels.
Therefore, revenues and gross margin are expected to have expanded in the to-be-reported quarter.
During the quarter, it made continuous efforts to develop an improved 5nm design strategy, with an aim of increasing software performance required in future cars.
Growing adoption of NXP’s offerings is expected to have strengthened the company’s presence in the automotive market. Moreover, the ongoing digital transformation across the auto vertical is expected to have been a major catalyst in the quarter.
For the quarter to be reported, the company anticipates revenues of $$2.45 billion, indicating an increase of 8% sequentially and 6% year over year, citing strength in end markets served, particularly automotive and mobile.
On a non-GAAP basis, it expects gross margin of 52.7% and non-GAAP operating margin of 29.7%.
However, the global coronavirus-driven economic crisis has been raising volatility in the semiconductor market. This is likely to pose a challenge to the upcoming quarterly results.
NXP Semiconductors N.V. Price and EPS Surprise
NXP Semiconductors N.V. price-eps-surprise | NXP Semiconductors N.V. Quote
What Our Model Says
Our proven model predicts an earnings beat for the company this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
Currently, NXP has a Zacks Rank #3 and an Earnings ESP of +1.30%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Other Stocks That Warrant a Look
Here are a couple of other stocks that you may also want to consider, as our model shows that these too have the right combination of elements to post an earnings beat in the quarter to be reported.
Microchip Technology Incorporated (MCHP - Free Report) has an Earnings ESP of +1.14% and a Zacks Rank #2.
eBay (EBAY - Free Report) has an Earnings ESP of +1.52% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Facebook has an Earnings ESP of +0.32% and a Zacks Rank #3.
Just Released: Zacks’ 7 Best Stocks for Today
Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.4% per year.
These 7 were selected because of their superior potential for immediate breakout.
See these time-sensitive tickers now >>