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What's in Store for NXP Semiconductors' (NXPI) Q1 Earnings?

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NXP Semiconductors N.V. (NXPI - Free Report) is scheduled to report first-quarter 2022 results on May 2.

For the first quarter, the Zacks Consensus Estimate for earnings is pegged at $3.18 per share. This indicates growth of 37.7% from the year-ago reported figure.

Further, the company anticipates revenues in the range of $3.025-$3.175 billion, indicating 18-24% year-over-year growth. The consensus mark for the same is pegged at $3.10 billion, implying growth of 20.9% from the year-ago reported figure.

NXP beat on earnings in all the trailing four quarters, with the average being 3.2%.

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 first-quarter performance is likely to have been driven by robust products, strong customer demand and design win momentum.

The company has been gaining momentum in the industrial and IoT markets on the back of industrial and crossover processes, wireless connectivity, and analog attach products. This is expected to have been a positive.

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 first quarter, NXPjoined forces with Taiwan-based original design manufacturer, Compal Electronics, to aid the latter in enhancing its 5G integrated small cell solution. The partnership is expected to have aided its performance in the quarter under discussion.

Further, the company introduced two processors, S32R45 and S32R41, which serve the L2+ through L5 autonomy sectors, enabling 4D imaging radar for 360-degree surround sensing. This is likely to have been a tailwind for the to-be-reported quarter.

NXP has been gaining traction for mobile-embedded power solutions. This might have supported the quarterly performance. Also, the growing adoption of secure mobile wallets and secure ultrawideband solutions is expected to have been other positives.

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 and long lead times are likely to have been concerns. Further, rising expenses related to research & development and selling, general & administrative might have negatively affected the performance of the to-be-reported quarter.

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.

Analog Devices (ADI - Free Report) has an Earnings ESP of +2.17% and a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Analog Devices is scheduled to release second-quarter fiscal 2022 results on May 18. The Zacks Consensus Estimate for ADI’s earnings is pegged at $2.12 per share, suggesting an increase of 37.7% from the prior-year reported figure.

Cisco Systems (CSCO - Free Report) has an Earnings ESP of +0.84% and a Zacks Rank #2 at present.

Cisco Systems is set to report third-quarter fiscal 2022 results on May 18. The Zacks Consensus Estimate for CSCO’s earnings is pegged at 86 cents per share, which suggests an increase of 3.61% from the prior-year reported figure.

HP (HPQ - Free Report) has an Earnings ESP of +0.78% and a Zacks Rank #3 at present.

HP is scheduled to release second-quarter fiscal 2022 results on May 26. The Zacks Consensus Estimate for HPQ’s earnings is pegged at $1.06 per share, which suggests an increase of 13.98% from the prior-year reported figure.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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