NXP Semiconductors (NXPI) Reports Earnings Tomorrow. What To Expect

Adam Hejl /
2022/10/31 4:33 am EDT

Chip manufacturer NXP Semiconductors (NASDAQ: NXPI) will be reporting results today after the bell. Here's what investors should know.

Last quarter NXP Semiconductors reported revenues of $3.31 billion, up 27.5% year on year, beating analyst revenue expectations by 1.43%. It was a decent quarter for the company, with a significant improvement in operating margin but an increase in inventory levels.

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This quarter analysts are expecting NXP Semiconductors's revenue to grow 19.7% year on year to $3.42 billion, slowing down from the 26.2% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $3.66 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 0.94%.

Looking at NXP Semiconductors's peers in the analog semiconductors segment, some of them have already reported Q3 earnings results, giving us a hint what we can expect. Texas Instruments delivered top-line growth of 12.8% year on year, beating analyst estimates by 1.9% and Sensata Technologies reported revenues up 7.07% year on year, exceeding estimates by 1.23%. Texas Instruments traded down 2.62% on the results, Sensata Technologies was down 6.23%. Read our full analysis of Texas Instruments's results here and Sensata Technologies's results here.

There has been positive sentiment among investors in the analog semiconductors segment, with the stocks up on average 2.48% over the last month. NXP Semiconductors is down 0.2% during the same time, and is heading into the earnings with with analyst price target of $186, compared to share price of $151.65.

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