NXP Semiconductors (NXPI) Reports Q3: Everything You Need To Know Ahead Of Earnings

Max Juang /
2023/11/05 2:02 am EST

Chip manufacturer NXP Semiconductors (NASDAQ: NXPI) will be reporting results today. Here's what to look for.

Last quarter NXP Semiconductors reported revenues of $3.3 billion, down 0.4% year on year, beating analyst revenue expectations by 2.9%. It was a decent quarter for the company, with strong sales guidance for the next quarter.

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 1.3% year on year to $3.4 billion, a deceleration on the 20.4% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $3.59 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 1.5%.

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. Impinj's revenues decreased 4.8% year on year, beating analyst estimates by 0.5% and Skyworks Solutions reported revenue decline of 13.4% year on year, exceeding estimates by 0.3%. Impinj traded up 20.7% on the results, Skyworks Solutions was down 7.0%.

Read our full analysis of Impinj's results here and Skyworks Solutions's results here.

Tech stocks have had a rocky start since 2022 and while some of the analog semiconductors stocks have fared somewhat better, they have not been spared, with share price declining 4.4% over the last month. NXP Semiconductors is down 8.3% during the same time, and is heading into the earnings with with analyst price target of $230, compared to share price of $181.6.

One way to find opportunities in the market is to watch for generational shifts in the economy. Almost every company is slowly finding itself becoming a technology company and facing cybersecurity risks and as a result, the demand for cloud-native cybersecurity is skyrocketing. This company is leading a massive technological shift in the industry and with revenue growth of 70% year on year and best-in-class SaaS metrics it should definitely be on your radar.

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