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NXP Semiconductors N.V. (NXPI), headquartered in Eindhoven, the Netherlands, is a leading global semiconductor company that designs, manufactures, and supplies high-performance mixed-signal and standard product solutions. Valued at $54.2 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 fourth-quarter earnings for 2024 on Monday, Feb. 3.
Ahead of the event, analysts expect NXPI to report a profit of $2.62 per share on a diluted basis, down 22.3% from $3.37 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 $11.33, down 10.8% from $12.70 in fiscal 2023. Its EPS is expected to decline 5% year over year to $10.76 in fiscal 2025.
NXPI stock has underperformed the S&P 500’s ($SPX) 25.8% gains over the past 52 weeks, with shares up 3.3% during this period. Similarly, it underperformed the Technology Select Sector SPDR Fund’s (XLK)27.1% gains over the same time frame.
NXPI’s underperformance was due to declining demand for its microchips across key segments, including automotive, industrial, and IoT, driven by weak consumer demand, macroeconomic challenges, and cautious business spending.
On Nov. 4, NXPI reported its Q3 results, and its shares closed down more than 5% in the following trading session. Its adjusted EPS of $3.45 surpassed Wall Street expectations of $3.43. The company’s revenue was $3.3 billion, matching Wall Street forecasts. For Q4, NXPI expects adjusted EPS to be $2.93, and it expects revenue to be between $3 billion and $3.2 billion.
Analysts’ consensus opinion on NXPI stock is moderately bullish, with a “Moderate Buy” rating overall. Out of 27 analysts covering the stock, 17 advise a “Strong Buy” rating, two suggest a “Moderate Buy,” seven give a “Hold,” and one recommends a “Strong Sell.” NXPI’s average analyst price target is $263.52, indicating a potential upside of 24% from the current levels.
