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What's in Store for NXP Semiconductor's (NXPI) Q4 Earnings?

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NXP Semiconductors N.V. (NXPI - Free Report) is scheduled to report fourth-quarter 2021 results on Jan 31.

For the fourth quarter, the Zacks Consensus Estimate for earnings is pegged at $3.01 per share. This indicates growth of 12.3% from the year-ago reported figure.

Further, the company anticipates revenues in the range of $2.925-$3.075 billion, indicating 17-23% year-over-year growth. The consensus mark for the same is pegged at $3 billion, implying growth of 19.7% from the year-ago reported figure.

NXP beat on earnings in all the trailing four quarters, with the average being 9.4%.

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 the fourth quarter.

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

In the fourth quarter, NXP introduced the i.MX 93 family of application processors that uses machine learning for automotive, smart home, smart building and smart factory applications. Also, it collaborated with Foxconn for developing a digital cockpit solution on the back of iNXP i.MX 8 QuadMax. These initiatives are likely to have supported its quarterly performance.

Additionally, the company partnered with Ford Motor Company for delivering improved driver experiences, convenience and services across its global fleet of vehicles. This is expected to have been a positive in the quarter under discussion.

Further, the company’s positive outlook toward Automotive, Industrial & IoT, and Communication infrastructure and Other might have been a positive.

Yet, the global coronavirus-driven economic crisis has been raising volatility in the semiconductor market. This might get reflected in the upcoming quarterly results.

Also, supply chain constraints in the automotive market are likely to have continued affecting its quarterly performance.

Further, the company’s negative outlook toward Mobile is expected to have been a negative.

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.

Endava (DAVA - Free Report) has an Earnings ESP of +0.85% and a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Endava is scheduled to release second-quarter fiscal 2022 results on Feb 16. The Zacks Consensus Estimate for DAVA’s earnings is pegged at 59 cents per share, suggesting an increase of 55.26% from the prior-year reported figure.

Monolithic Power Systems (MPWR - Free Report) has an Earnings ESP of +2.83% and a Zacks Rank #2 at present.

Monolithic Power Systems is set to report fourth-quarter 2021 results on Feb 10. The Zacks Consensus Estimate for MPWR’s earnings is pegged at $1.87 per share, which suggests an increase of 42.75% from the prior-year reported figure.

Alphabet (GOOGL - Free Report) has an Earnings ESP of +7.33% and a Zacks Rank #3 at present.

Alphabet is scheduled to release fourth-quarter 2021 results on Feb 1. The Zacks Consensus Estimate for GOOGL’s earnings is pegged at $26.69 per share, which suggests an increase of 19.69% from the prior-year reported figure.