What's in Store for NXP Semiconductors' (NXPI) Q3 Earnings?
NXP Semiconductors N.V. NXPI is scheduled to report third-quarter 2022 results on Oct 31.
For the third quarter, NXPI anticipates revenues in the range of $3.35-$3.50 billion, indicating 17-22% growth from the year-ago quarter’s reported figure. The consensus mark for the same is pegged at $3.43 billion, implying growth of 19.8% from the year-ago period’s reported figure.
The Zacks Consensus Estimate for earnings, which has been unchanged over the past 30 days, is pegged at $3.66 per share, indicating growth of 29.79% from the year-ago quarter’s reported figure.
NXPI beat on earnings in all the trailing four quarters, the average being 13.4%.
NXP Semiconductors N.V. Price and EPS Surprise
NXP Semiconductors N.V. price-eps-surprise | NXP Semiconductors N.V. Quote
Key Factors to Note
NXP Semiconductors’ third-quarter performance is likely to have been driven by continued strong momentum across radar, advanced driver assistance systems and battery management.
Strong customer demand, robust products and design win momentumare anticipated to have continued benefiting NXPI in the quarter under review.
In the third quarter, NXPI announced strong customer engagements for the entire S32 family of the domain and zonal automotive processors. This is likely to have driven NXPI’s performance in the to-be-reported quarter.
NXP Semiconductors is steadily gaining momentum in the Automotive end market owing to increased content, robust sensing, processing and control applications. This is likely to have remained a tailwind in the third quarter.
NXPI expects Automotive revenues to be up in the low 20% range from the year-ago quarter’s reported figure. The Zacks Consensus Estimate for Automotive revenues is pegged at $1.79 billion, indicating 23.2% growth from the year-ago quarter’s reported figure.
Solid momentum in connected edge processing, connectivity and security is expected to have driven NXPI’s revenues in the Industrial & IoT end market in the quarter under discussion.
NXP expects Industrial & IoT revenues to be up in the low 20% range from the year-ago quarter’s reported number. The Zacks Consensus Estimate for Industrial & IoT revenues is pegged at $746 million, indicating a 22.9% rise from the same-quarter level last year.
NXP Semiconductors has been gaining traction from mobile-embedded power solutions, which might have supported its quarterly performance. The growing adoption of secure mobile wallets and secure ultrawideband solutions is also expected to have been another positive.
However, supply-chain challenges due to the ongoing coronavirus pandemic are likely to have continued affecting NXP’s financial performance during the third quarter. The pandemic-induced fresh lockdowns in China are likely to have remained a headwind.
Softness in the low-end Android handset markets, long lead times, continuing geopolitical tensions and mounting expenses are expected to have affected NXPI’s performance in the to-be-reported quarter.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for NXP Semiconductorsthis time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here as elaborated below. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
NXP has an Earnings ESP of 0.00% and a Zacks Rank #4 (Sell) at present.
Stocks to Consider
Here are some stocks worth considering, as our model shows that these have the right combination of elements to beat on earnings this season.
Fortinet FTNT has an Earnings ESP of +0.92% and a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Fortinet is set to report third-quarter 2022 results on Nov 2. The Zacks Consensus Estimate for FTNT’s earnings is pegged at 27 cents per share, suggesting an increase of 35% from the prior-year period’s reported figure.
The Trade Desk TTD has an Earnings ESP of +2.13% and a Zacks Rank of 2 at present.
The Trade Desk is scheduled to release third-quarter 2022 results on Nov 14. The Zacks Consensus Estimate for TTD’s earnings is pegged at 24 cents per share, suggesting an increase of 33.3% from the prior-year quarter’s reported figure.
ZoomInfo Technologies ZI has an Earnings ESP of +1.27% and a Zacks Rank of 2 at present.
ZoomInfo Technologies is scheduled to release third-quarter 2022 results on Nov 1. The Zacks Consensus Estimate for ZI’s earnings is pegged at 20 cents per share, suggesting an increase of 53.9% from the prior-year quarter’s reported figure.
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NXP Semiconductors N.V. (NXPI) : Free Stock Analysis Report
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