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NXP Semiconductors N.V. (NXPI), headquartered in Eindhoven, the Netherlands, designs, manufactures, and supplies high-performance mixed-signal and standard product solutions. Valued at $43.5 billion by market cap, the company's innovative products and solutions are used in a wide range of applications, including automotive, industrial, IoT, mobile, and communication infrastructure. The leading player in automotive processing and networking is expected to announce its fiscal first-quarter earnings for 2025 after the market closes on Monday, Apr. 28.
Ahead of the event, analysts expect NXPI to report a profit of $2.18 per share on a diluted basis, down 23.5% from $2.85 per share in the year-ago quarter. The company beat or matched the consensus estimates in three of the last four quarters while missing the forecast on another occasion.
For the full year, analysts expect NXPI to report EPS of $10.08, down 12.7% from $11.54 in fiscal 2024. However, its EPS is expected to rise 21.1% year over year to $12.21 in fiscal 2026.
NXPI stock has underperformed the S&P 500’s ($SPX) 5.5% gains over the past 52 weeks, with shares down 20.1% during this period. Similarly, it underperformed the Technology Select Sector SPDR Fund’s (XLK) marginal dip over the same time frame.
NXPI’s recent underperformance has been driven by concerns around decelerating demand, particularly in key segments such as Industrial & IoT and Communication Infrastructure. This, combined with these segments missing consensus estimates, has led to a decrease in investor confidence, despite the strong performance in the automotive sector.
On Feb. 3, NXPI shares closed down more than 1% after reporting its Q4 results. Its adjusted EPS of $3.18 surpassed Wall Street expectations of $3.14. The company’s revenue was $3.11 billion, topping Wall Street forecasts of $3.10 billion. For Q1, the company expects revenue in the range of $2.7 billion to $2.9 billion.
Analysts’ consensus opinion on NXPI stock is bullish, with a “Strong Buy” rating overall. Out of 27 analysts covering the stock, 20 advise a “Strong Buy” rating, two suggest a “Moderate Buy,” and five give a “Hold.” NXPI’s average analyst price target is $242, indicating an ambitious potential upside of 38.6% from the current levels.
On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
