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NXPI Set to Report Q3 Earnings: What's in Store for the Stock?

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NXP Semiconductors (NXPI - Free Report) is scheduled to report third-quarter 2024 results after market close on Nov. 4.

NXPI expects third-quarter revenues to be in the range of $3.15-$3.35 billion. The Zacks Consensus Estimate for revenues is pegged at $3.25 billion, indicating a year-over-year decline of 5.3%.

For the third quarter, NXP Semiconductors anticipates non-GAAP earnings per share between $3.21 and $3.63. The consensus mark for earnings is pinned at $3.43 per share, which remained unchanged over the past 60 days and suggests a 7.3% year-over-year decline.

In the trailing four quarters, NXPI’s earnings beat the Zacks Consensus Estimate thrice and matched once, with the average surprise being 1.8%.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

Factors to Consider for NXPI

NXPI’s third-quarter performance is likely to have benefited from the strong momentum across the Industrial & Internet of Things (IoT), driven by the demand in China and Asia Pacific. Robust demand across the Mobile end market is expected to have driven the top line.

The recent launch of the Trimension SR250, the industry’s single-chip solution in the Industrial and IoT market, that combines on-chip processing capabilities with both short-range Ultra-Wideband radar and secure ranging might have boosted its sales in the quarter to be reported.

Our model estimate for NXPI’s Industrial & IoT revenues is pegged at $620 million, indicating a year-over-year increase of 2.1%. Our estimate of $394 million for the Mobile end market implies growth of 4.5% from the year-ago quarter.
 

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

Nevertheless, NXPI’s third-quarter performance is likely to have been hurt by continued weakness in the Automobile and Communication Infrastructure end markets. Ongoing inventory corrections at select direct Tier 1 auto customers are expected to have weakened NXPI’s prospects in the third quarter.

Sluggishness in the communications infrastructure sector due to weaker base station deployments globally and faster-than-expected demand shift to gallium nitride products is expected to have been a major headwind for the company. Meanwhile, macroeconomic concerns, rising geopolitical tensions and high inflation are expected to have weighed on IT spending by its customers.

Our model estimate for Automotive revenues is currently pegged at $1.82 billion, indicating a decline of 3.6% from the year-ago quarter. Our estimate for Communications Infrastructure & Others segment revenues in third-quarter 2024 is pegged at $414.3 million, indicating a decline of 25.9% on a year-over-year basis.

 

Earnings Whispers for NXPI

According to the Zacks model, the combination of a positive Earnings ESP and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.

NXPI has an Earnings ESP of 0.00% and carries a Zacks Rank #4 (Sell) at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks to Consider

Here are some stocks worth considering, as our model shows that they have the right combination of elements to beat on earnings this reporting cycle.

Arista Networks (ANET - Free Report) has an Earnings ESP of +0.72% and sports a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Arista Networks’ shares have surged 70.6% year to date. It is slated to report its third-quarter 2024 results on Nov. 7.

The Zacks Consensus Estimate for ANET’s third-quarter 2024 earnings is pegged at $2.09 per share, up by a penny over the past 60 days. This suggests an improvement of 14.2% from the year-ago quarter’s reported figure.

Lyft (LYFT - Free Report) has an Earnings ESP of +5.00% and a Zacks Rank #2 at present.

LYFT shares have lost 7.2% year to date. It is slated to release third-quarter 2024 results on Nov. 6.

The Zacks Consensus Estimate for LYFT’s earnings is pegged at 20 cents per share, up by a couple of pennies over the past 60 days. This indicates a decline of 16.7% from the year-ago quarter’s reported figure.

Meta Platforms (META - Free Report) has an Earnings ESP of +1.97% and a Zacks Rank #2 at present. META’s shares have gained 67.7% year to date. It is set to report third-quarter 2024 results on Oct. 30.

The Zacks Consensus Estimate for META’s third-quarter 2024 earnings is pegged at $5.19 per share, up by a couple of pennies for the past 60 days, indicating an improvement of 18.2% from the year-ago quarter’s reported figure.

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