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What To Expect From NXP Semiconductors’s (NXPI) Q1 Earnings


Jabin Bastian /
2022/05/02 3:51 am EDT
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Chip manufacturer NXP Semiconductors (NASDAQ: NXPI) will be reporting results today after market hours. Here's what to look for.

Last quarter NXP Semiconductors reported revenues of $3.03 billion, up 21.2% year on year, beating analyst revenue expectations by 1.19%. It was a very strong quarter for the company, with a significant improvement in gross margin and a very optimistic 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 grow 20.9% year on year to $3.1 billion, slowing down from the 27% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $3.19 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 0.67%.

Looking at NXP Semiconductors's peers in the analog semiconductors segment, some of them have already reported Q1 earnings results, giving us a hint what we can expect. Texas Instruments delivered top-line growth of 14.3% year on year, beating analyst estimates by 3.65% and Sensata Technologies reported revenues up 3.52% year on year, exceeding estimates by 1.57%. Texas Instruments traded down 7.5% on the results, Sensata Technologies traded flat on the results. Read our full analysis of Texas Instruments's results here and Sensata Technologies's results here.

Triggered by the Federal Reserve's hawkish stance on interest rates, shares of technology companies have been facing sell-off in 2022 and while some of the semiconductors stocks have fared somewhat better, they have not been spared, with share price declining 12.7% over the last month. NXP Semiconductors is down 8.01% during the same time, and is heading into the earnings with analyst price target of $227.7, compared to share price of $171.48.

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