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NXP (NXPI) to Report Q2 Earnings: What's in the Cards?

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NXP Semiconductors N.V. (NXPI - Free Report) is scheduled to report second-quarter 2021 results on Aug 2.

For the second quarter, the Zacks Consensus Estimate for earnings is pegged at $2.31 per share. This indicates growth of 230% from the year-ago reported figure.

Further, the company anticipates revenues of $2.50-$2.64 billion. The consensus mark for the same is pegged at $2.58 billion, implying growth of 41.9% from the year-ago reported figure.

NXP beat on earnings in three of the trailing four quarters and missed the same on one occasion, with the average surprise being 5.2%.

NXP Semiconductors N.V. Price and EPS Surprise

NXP Semiconductors N.V. Price and EPS Surprise

NXP Semiconductors N.V. price-eps-surprise | NXP Semiconductors N.V. Quote

Key Factors to Note

NXP’s robust products, strong customer demand and design win momentum are expected to have continued aiding top-line growth in second-quarter 2021.

The company’s positive outlook toward Automotive, Industrial & IoT and Mobile is likely to have remained a tailwind.

Further, growing momentum across radar, advanced driver assistance systems, battery management and digital clusters businesses is anticipated to have benefited its performance in the quarter under review.

During the quarter, the company incorporated Gallium Nitride technology into the multi-chip module platform to boost 5G energy prospects. Also, it expanded presence in the booming 5G market in India by its recent partnership with Jio Platforms. These are likely to get reflected in the upcoming quarterly results.

Further, it introduced S32G2 vehicle network processors and S32R294 radar processor on Taiwan Semiconductor’s (TSM - Free Report) 16 nanometer FinFET technology for automotive processing in the to-be-reported quarter. This might have remained a tailwind.

Yet, 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. Also, the company’s negative outlook toward Communication Infrastructure & Other is expected to get reflected in the to-be-reported quarter’s results.

What Our Model Says

Our proven model predicts an earnings beat for NXP 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. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

It has an Earnings ESP of +2.40% and a Zacks Rank #2, at present.

Other Stocks to Consider

Here are some other stocks that you may also consider as our model shows that these too have the right combination of elements to beat on earnings this season.

Agilent Technologies (A - Free Report) has an Earnings ESP of +1.49% and a Zacks Rank #2, at present.

CyberArk Software (CYBR - Free Report) has an Earnings ESP of +37.93% and a Zacks Rank of 2, at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

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