NXP Semiconductors Q4 Earnings Report Preview: What To Look For

Jabin Bastian /
2022/01/30 6:44 pm EST
Add to Watchlist

Chip manufacturer NXP Semiconductors (NASDAQ: NXPI) will be reporting results tomorrow after market hours. Here's what to expect.

Last quarter NXP Semiconductors reported revenues of $2.86 billion, up 26.2% year on year, in line with analyst expectations. It was a very strong quarter for the company, with a significant improvement in gross margin and a significant improvement in operating margin.

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 16.1% year on year to $2.91 billion, improving on the 4.6% year-over-year increase in revenue the company had recorded in the same quarter last year. Earnings are expected to come in at $2.81 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 only missed Wall St's revenue estimates once over the last two years, and has on average exceeded top line expectations by 0.63%.

Looking at NXP Semiconductors's peers in the semiconductors segment, some of them have already reported Q4 earnings results, giving us a hint what we can expect. Texas Instruments's delivered top-line growth of 18.5% year on year, beating analyst estimates by 9.05% and Intel Corporation's reported revenues up 2.75% year on year, exceeding estimates by 11.8%. Texas Instruments traded up 2.35% on results, Intel Corporation was down 7.04%. You can read our full analysis of Texas Instruments's earnings results here.

The technology sell-off has been putting pressure on stocks since November and semiconductors stocks have not been spared, with share price down on average 17.1% over the last month. NXP Semiconductors is down 17.5% during the same time, and is heading into the earnings with with analyst price target of $233.4, compared to share price of $190.6.

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.

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