NXP Semiconductors (NXPI) Q2 Earnings Report Preview: What To Look For

Kayode Omotosho /
2022/07/24 7:36 am EDT

Chip manufacturer NXP Semiconductors (NASDAQ: NXPI) will be reporting earnings tomorrow after market hours. Here's what investors should know.

Last quarter NXP Semiconductors reported revenues of $3.13 billion, up 22.1% year on year, beating analyst revenue expectations by 1.04%. It was a solid quarter for the company, with a significant improvement in operating margin and guidance for the next quarter above analysts' estimates.

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 grow 25.7% year on year to $3.26 billion, slowing down from the 42.8% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $3.38 per share.

NXP Semiconductors Total Revenue

The analysts covering the company have been growing increasingly bearish about the business heading into the earnings, with revenue estimates seeing two downward revisions over the last thirty days. 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 0.8%.

Looking at NXP Semiconductors's peers in the semiconductors segment, some of them have already reported Q2 earnings results, giving us a hint of what we can expect. Seagate Technology's revenues decreased 12.7% year on year, missing analyst estimates by 5.72%. Seagate Technology traded down 8.29% on the results. Read our full analysis of Seagate Technology's results.

There has been positive sentiment among investors in the semiconductors segment, with the stocks up on average 9.17% over the last month. NXP Semiconductors is up 12.9% during the same time, and is heading into the earnings with analyst price target of $201, compared to share price of $175.1.

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