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NXP (NXPI) to Report Q3 Earnings: What's in the Offing?

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NXP Semiconductors N.V. (NXPI - Free Report) is scheduled to report third-quarter 2021 results on Nov 1.

For the third quarter, the Zacks Consensus Estimate for earnings is pegged at $2.74 per share. This indicates growth of 61.2% from the year-ago reported figure.

Further, the company anticipates revenues in the range of $2.775-$2.925 billion, indicating an increase between 22% and 29% year over year. The consensus mark for the same is pegged at $2.85 billion, implying growth of 25.7% from the year-ago reported figure.

NXP beat on earnings in all the trailing four quarters, with the average being 10.4%.

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

The company’s robust products, strong customer demand and design win momentum are expected to have persistently aided top-line growth in third-quarter 2021.

A continuous increase in wafer supply is likely to have driven its quarterly performance in the to-be-reported quarter.

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

Strength in its Trimension Ultra-Wideband platform is likely to have remained a positive factor in the soon-to-be-reported quarter.

During the quarter, Xiaomi MIX4’s “Point to connect” capabilities were powered by NXP’s Trimension UWB technology. This is likely to have supported its quarterly performance.

Additionally, the company partnered with MOTER Technologies to provide a safe data exchange platform that combines its S32G2 vehicle network processors with the latter’s insurance data science expertise and software. This is expected to have aided NXP in the quarter under discussion.

Further, the company’s positive outlook toward Automotive, Industrial & IoT, and Communication infrastructure and Other might get reflected in the upcoming quarterly results.

Yet, the global coronavirus-driven economic crisis has been raising volatility in the semiconductor market. This might pose a challenge to the upcoming quarterly results.

Also, supply chain constraints in all end markets served are likely to have continued affecting its quarterly performance.

Further, the company’s negative outlook toward Mobile is expected to get reflected in the to-be-reported quarterly results.

What Our Model Says

Our proven model does not conclusively predict 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. But that’s not the case here. 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 0.00% and a Zacks Rank #3, at present.

Stocks to Consider

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

Trimble (TRMB - Free Report) has an Earnings ESP of +3.64% and a Zacks Rank of 2, at present.

HP (HPQ - Free Report) has an Earnings ESP of +1.89% and a Zacks Rank of 1, at present.

Agilent (A - Free Report) has an Earnings ESP of +0.61% and a Zacks Rank of 3, at present. You can see the complete list of today’s Zacks #1 Rank stocks here.


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HP Inc. (HPQ) - free report >>

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Trimble Inc. (TRMB) - free report >>

NXP Semiconductors N.V. (NXPI) - free report >>