NXP Semiconductors Earnings: What To Look For From NXPI

Kayode Omotosho /
2023/05/01 2:57 am EDT
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Chip manufacturer NXP Semiconductors (NASDAQ: NXPI) will be reporting results today after market hours. Here's what investors should know.

Last quarter NXP Semiconductors reported revenues of $3.31 billion, up 8.98% year on year, in line with analyst expectations. It was a weak quarter for the company, with underwhelming revenue guidance for the next quarter and an increase in inventory levels.

Is NXP Semiconductors buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting NXP Semiconductors's revenue to decline 4.26% year on year to $3 billion, a deceleration on the 22.2% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $3.02 per share.

NXP Semiconductors Total Revenue

Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company has a history of exceeding Wall St's expectations, beating revenue estimates every single time over the past two years on average by 0.78%.

Looking at NXP Semiconductors's peers in the analog semiconductors segment, some of them have already reported Q1 earnings results, giving us a hint of what we can expect. Texas Instruments's revenues decreased 10.7% year on year, beating analyst estimates by 0.22% and Sensata Technologies reported revenues up 2.3% year on year, exceeding estimates by 1.36%. Texas Instruments traded down 0.68% on the results, Sensata Technologies was flat on the results. Read our full analysis of Texas Instruments's results here and Sensata Technologies's results here.

The fears around raising interest rates have been putting pressure on tech stocks and while some of the analog semiconductors stocks have fared somewhat better, they have not been spared, with share price declining 9.57% over the last month. NXP Semiconductors is down 9.99% during the same time, and is heading into the earnings with analyst price target of $198.3, compared to share price of $163.8.

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The author has no position in any of the stocks mentioned.