NXP Semiconductors N.V.


NXPI

is scheduled to report second-quarter 2022 results on Jul 25.

For the second quarter, NXPI anticipates revenues in the range of $3.18-$3.38 billion, indicating 22-30% growth from the year-ago quarter’s reported figure. The consensus mark for the same is pegged at $3.27 billion, implying growth of 26.1% from the year-ago period’s reported figure.

The Zacks Consensus Estimate for earnings, which has been unchanged for the past 30 days, is pegged at $3.39 per share, indicating growth of 42.4% from the year-ago reported figure.

NXPI beat on earnings in all the trailing four quarters, the average being 4.2%.

Key Factors to Note

NXP Semiconductors’ second-quarter performance is likely to have been driven by strong momentum across radar, advanced driver assistance systems and battery management.

Strong customer demand, robust products and design win momentum are anticipated to have continued benefiting NXPI in the quarter under review.

NXP Semiconductors has been 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 second quarter.

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 Semiconductors has been gaining traction for 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.

In the second quarter, NXPI introduced the MCX portfolio of microcontrollers for advancement in smart homes, smart factories, smart cities and across many emerging industrial and IoT edge applications. This is likely to have been a tailwind for the to-be-reported quarter.

However, the global coronavirus-driven economic crisis has been rendering volatility to the semiconductor market. This might get reflected in the upcoming quarterly results. Also, the pandemic-driven lockdowns in China are likely to have remained a headwind in the June quarter.

Supply-chain constraints, long lead times and the unending Russia-Ukraine war are also expected to have been concerns. Rising expenses related to research & development, and selling, general & administrative costs might 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. 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.

Aspen Technology


AZPN

has an Earnings ESP of +1.40% and a Zacks Rank #2 at present. You can see


the complete list of today’s Zacks #1 Rank stocks here

.

Aspen Technology is set to report fourth-quarter fiscal 2022 results on Aug 8. The Zacks Consensus Estimate for ASPN’s earnings is pegged at $2.15 per share, which suggests an increase of 40.5% from the prior-year fiscal period’s reported figure.

Keysight Technologies


KEYS

has an Earnings ESP of +1.23% and a Zacks Rank of 2 at present.

Keysight Technologies is scheduled to release third-quarter fiscal 2022 results on Aug 17. The Zacks Consensus Estimate for KEYS’ earnings is pegged at $1.79 per share, suggesting an increase of 16.2% from the prior-year quarter’s reported figure.

Advanced Micro Devices


AMD

has an Earnings ESP of +2.14% and a Zacks Rank #3 at present.

Advanced Micro Devices is scheduled to release second-quarter 2022 results on Aug 2. The Zacks Consensus Estimate for AMD’s earnings is pegged at $1.03 per share, suggesting an increase of 63.5% from the prior-year quarter’s reported figure.

Stay on top of upcoming earnings announcements with the

Zacks Earnings Calendar

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