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

Radek Strnad /
2023/07/23 5:21 am EDT

Chip manufacturer NXP Semiconductors (NASDAQ: NXPI) will be reporting earnings tomorrow after the bell. Here's what you need to know.

Last quarter NXP Semiconductors reported revenues of $3.12 billion, down 0.48% year on year, beating analyst revenue expectations by 3.95%. It was a decent quarter for the company, with very optimistic guidance for the next quarter but 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' revenue to decline 3.18% year on year to $3.21 billion, a deceleration on the 27.6% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $3.28 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 1.22%.

With NXP Semiconductors being the first among its peers to report earnings this season, we don't have anywhere else to look at to get a hint at how this quarter will unravel for semiconductors stocks, but there has been positive sentiment among investors in the segment, with the stocks up on average 4.91% over the last month. NXP Semiconductors is up 10.8% during the same time, and is heading into the earnings with analyst price target of $212.54, compared to share price of $213.02.

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