Yahoo Finance What's in Store for NXP Semiconductors' (NXPI) Q4 Earnings?
NXP Semiconductors NXPI is scheduled to report its fourth-quarter 2022 results on Jan 30.
For the fourth quarter, NXPI expects revenues between $3.2 billion and $3.4 billion. The Zacks Consensus Estimate for sales is pegged at $3.28 billion, indicating growth of 8% from the year-ago quarter’s reported value.
The Zacks Consensus mark for earnings is pegged at $3.60 per share, indicating growth of 16.9% from the previous-year ago quarter’s reported figure.
Key Factors to Note
NXP Semiconductors’ solid momentum across sensing, processing and control applications is likely to have aided its performance in the Automotive end-market during the fourth quarter.
Further, strength in auto radar systems, auto electrification systems, auto domain and zonal processors is expected to have been a tailwind.
NXPI expects Automotive revenues to grow by high teens on a percentage basis from the year ago quarter’s reported figure. The Zacks Consensus Estimate for Automotive revenues is pegged at $1.78 billion, indicating 15.2% growth from the year-ago quarter’s reported figure.
This apart, NXP Semiconductors’ strong position in high-power RF, along with increasing requirement of RF power in 5G infrastructure, is expected to have driven its top-line growth in the communication infrastructure market.
For the fourth quarter, NXP expects Communication, Infrastructure & Other revenues to be up in the low teens range on a year-over-year basis. The Zacks Consensus Estimate for the same is pegged at $505 million, indicating a 10.5% rise from the same-quarter level last year.
NXP Semiconductors N.V. Price and EPS Surprise
NXP Semiconductors N.V. price-eps-surprise | NXP Semiconductors N.V. Quote
Coming to Mobile end-market, the company expects revenues to be up in the low single-digit range year over year. Solid momentum across secure mobile wallet, access and identification might have continued driving the top-line growth in the quarter under review. The Zacks Consensus Estimate for Mobile revenues is pegged at $385 million, indicating a 2.9% rise from the same-quarter level last year.
However, weakness in the Android mobile market is expected to have been a negative.
In addition, the company’s Industrial & IoT revenues are expected to be down in the low double-digit range on a percentage basis from the year ago quarter’s reported figure. Wide-spread weakness in the consumer IoT space is expected to have hurt the performance of NXP in the Industrial & IoT market during the fourth quarter.
The Zacks Consensus Estimate for Industrial & IoT revenues is pegged at $712 million, indicating a decline of 7.4% from the same-quarter level last year.
Also, supply-chain disruptions led by the coronavirus pandemic are likely to have continued impacting the company’s financial performance during the fourth quarter negatively.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for NXPI 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. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
NXP Semiconductors has an Earnings ESP of +0.09% and a Zacks Rank #4 (Sell) at present.
Stocks to Consider
Here are some stocks worth considering, as our model shows that these have the right combination of elements to beat on earnings this season.
AMETEK AME has an Earnings ESP of +0.68% and a Zacks Rank #3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
AMETEK is scheduled to release its fourth-quarter 2022 results on Feb 2. The Zacks Consensus Estimate for AME earnings is pegged at $1.47 per share, suggesting an increase of 7.3% from the prior-year quarter’s reported figure.
Endava DAVA has an Earnings ESP of +1.97% and a Zacks Rank #3 at present.
Endava is set to report second-quarter fiscal 2023 results on Feb 15. The Zacks Consensus Estimate for DAVA’s earnings is pegged at 68 cents per share, suggesting an increase of 7.94% from the prior-year period’s reported figure.
Analog Devices ADI has an Earnings ESP of +1.13% and a Zacks Rank #3 at present
Analog Devices is scheduled to release its first-quarter fiscal 2023 results on Feb 15. The Zacks Consensus Estimate for ADI’s earnings is pegged at $2.59 per share, suggesting an increase of 33.5% from the prior-year quarter’s reported figure.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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