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 Semiconductors (NXPI) Q3 Earnings: What to Expect?
Read MoreHide Full Article
NXP Semiconductors NV (NXPI - Free Report) is set to report third-quarter 2016 results on Oct 26. Last quarter, the company recorded a positive earnings surprise of 4.50%. Notably, NXP Semiconductors has surpassed the Zacks Consensus Estimate thrice in the four preceding quarters with an average positive surprise of 1.04%.
Let’s see how things are shaping up for this quarter.
Factors to Consider
NXP Semiconductors, a global semiconductor company known for its automotive and chip identification business, has seen massive growth in the portable device segment over the past year. This trend is expected to have continued in the third quarter as well.
Persistently strong adoption of tablets and smartphones, automotive electronics and the emergence of a new category of wearables boosted the demand for processing and sensing devices that run them. This should boost NXP Semiconductors’ third-quarter revenues.
With last year’s acquisition of Freescale Semiconductor, NXP Semiconductors has now become the world’s leading provider of automotive semiconductor solutions and general purpose microcontroller products. We believe that this acquisition will add to the company’s third-quarter earnings as it did in the previous two quarters.
It should be noted that while announcing the merger, NXP Semiconductors had forecast that the acquisition will be accretive to its non-GAAP earnings in 2016 as well as achieve cost savings of approximately $200 million. Apart from this, it also anticipated to create a path to achieve an annual cost synergy of about $500 million in the long run.
Nonetheless, macroeconomic weakness, competition from Analog Devices Inc. (ADI - Free Report) and ON Semiconductor Corp., consolidation in the telecom market, declining margins and volatility in the semiconductor market may negatively impact NXP Semiconductors’ results in the to-be reported quarter.
Our proven model does not conclusively show that NXP Semiconductors will beat earnings this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here as you will see below.
Zacks ESP: Earnings ESP for NXP Semiconductors is 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate stand at $1.37 per share.
Zacks Rank: NXP Semiconductors has a Zacks Rank #3, which when combined with an ESP of 0.00%, makes surprise prediction difficult.
We caution against stocks with a Zacks Rank #4 or 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks to Consider
Here are a couple of companies which you may consider, as our model shows that they have the right combination of elements to post an earnings beat this quarter:
Boyd Gaming Corporation (BYD - Free Report) , with an Earnings ESP of +16.67% and a Zacks Rank #2
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
NXP Semiconductors (NXPI) Q3 Earnings: What to Expect?
NXP Semiconductors NV (NXPI - Free Report) is set to report third-quarter 2016 results on Oct 26. Last quarter, the company recorded a positive earnings surprise of 4.50%. Notably, NXP Semiconductors has surpassed the Zacks Consensus Estimate thrice in the four preceding quarters with an average positive surprise of 1.04%.
Let’s see how things are shaping up for this quarter.
Factors to Consider
NXP Semiconductors, a global semiconductor company known for its automotive and chip identification business, has seen massive growth in the portable device segment over the past year. This trend is expected to have continued in the third quarter as well.
Persistently strong adoption of tablets and smartphones, automotive electronics and the emergence of a new category of wearables boosted the demand for processing and sensing devices that run them. This should boost NXP Semiconductors’ third-quarter revenues.
With last year’s acquisition of Freescale Semiconductor, NXP Semiconductors has now become the world’s leading provider of automotive semiconductor solutions and general purpose microcontroller products. We believe that this acquisition will add to the company’s third-quarter earnings as it did in the previous two quarters.
It should be noted that while announcing the merger, NXP Semiconductors had forecast that the acquisition will be accretive to its non-GAAP earnings in 2016 as well as achieve cost savings of approximately $200 million. Apart from this, it also anticipated to create a path to achieve an annual cost synergy of about $500 million in the long run.
Nonetheless, macroeconomic weakness, competition from Analog Devices Inc. (ADI - Free Report) and ON Semiconductor Corp., consolidation in the telecom market, declining margins and volatility in the semiconductor market may negatively impact NXP Semiconductors’ results in the to-be reported quarter.
NXP SEMICONDUCT Price and EPS Surprise
NXP SEMICONDUCT Price and EPS Surprise | NXP SEMICONDUCT Quote
Earnings Whispers
Our proven model does not conclusively show that NXP Semiconductors will beat earnings this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here as you will see below.
Zacks ESP: Earnings ESP for NXP Semiconductors is 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate stand at $1.37 per share.
Zacks Rank: NXP Semiconductors has a Zacks Rank #3, which when combined with an ESP of 0.00%, makes surprise prediction difficult.
We caution against stocks with a Zacks Rank #4 or 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks to Consider
Here are a couple of companies which you may consider, as our model shows that they have the right combination of elements to post an earnings beat this quarter:
NVIDIA Corp. (NVDA - Free Report) , with an Earnings ESP of +8.93% and a Zacks Rank #3.You can see the complete list of today’s Zacks #1 Rank stocks here.
Boyd Gaming Corporation (BYD - Free Report) , with an Earnings ESP of +16.67% and a Zacks Rank #2
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>