Chip manufacturer NXP Semiconductors (NASDAQ: NXPI) will be reporting earnings this Monday afternoon. Here’s what to look for.
NXP Semiconductors met analysts’ revenue expectations last quarter, reporting revenues of $2.84 billion, down 9.3% year on year. It was a mixed quarter for the company, with a narrow beat of analysts’ adjusted operating income estimates but an increase in its inventory levels.
Is NXP Semiconductors a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting NXP Semiconductors’s revenue to decline 7.2% year on year to $2.90 billion, a further deceleration from the 5.2% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.66 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. NXP Semiconductors has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 0.7% on average.
Looking at NXP Semiconductors’s peers in the semiconductors segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Micron delivered year-on-year revenue growth of 36.6%, beating analysts’ expectations by 4.9%, and Penguin Solutions reported revenues up 7.9%, falling short of estimates by 1.4%. Micron traded down 1.2% following the results while Penguin Solutions was up 10.6%.
Read our full analysis of Micron’s results here and Penguin Solutions’s results here.
There has been positive sentiment among investors in the semiconductors segment, with share prices up 10.4% on average over the last month. NXP Semiconductors is up 8.1% during the same time and is heading into earnings with an average analyst price target of $247.22 (compared to the current share price of $226).
When a company has more cash than it knows what to do with, buying back its own shares can make a lot of sense–as long as the price is right. Luckily, we’ve found one, a low-priced stock that is gushing free cash flow AND buying back shares. Click here to claim your Special Free Report on a fallen angel growth story that is already recovering from a setback.
StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.