NXPI Set to Report Q4 Earnings: What's in Store for the Stock?

NXP Semiconductors NXPI is scheduled to report fourth-quarter 2024 results on Feb. 3, after market close.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.NXPI expects fourth-quarter revenues to be between $3 billion and $3.2 billion. The Zacks Consensus Estimate for revenues is pegged at $3.10 billion, indicating a 9.4% year-over-year decline.For the fourth quarter, NXP Semiconductors anticipates non-GAAP earnings per share between $2.93 and $3.33. The consensus mark for earnings is pinned at $3.14 per share, which remained unchanged over the past 60 days, suggesting a 15.4% year-over-year decline.In the trailing four quarters, NXPI’s earnings beat the Zacks Consensus Estimate thrice and matched once, with the average surprise being 1.1%.NXP Semiconductors N.V. Price and EPS Surprise NXP Semiconductors N.V. price-eps-surprise | NXP Semiconductors N.V. QuoteFactors to Consider for NXPINXPI's fourth-quarter performance is likely to have been negatively impacted by persistent weakness in the Automobile and Communication Infrastructure end markets. Ongoing inventory corrections at certain direct Tier 1 auto customers, coupled with a slowdown in demand from European and North American car OEMs, are expected to have exerted pressure on NXP Semiconductors’ prospects in the to-be-reported quarter.These patterns align with the declining global manufacturing PMI trends and the numerous profit warnings from major western automakers, which are affecting demand in the industrial and Internet of Things markets. Our model estimate for NXPI’s Industrial & IoT revenues is pegged at $532.7 million, indicating a year-over-year decline of 19.5%. Our estimate of $399.1 million for the Mobile end market implies a decline of 1.7% from the year-ago quarter.Further, NXP Semiconductors is anticipated to have faced significant challenges due to the communications infrastructure sector's slowdown, caused by a faster-than-expected shift in demand to gallium nitride products and weaker base station deployments worldwide. Customers' IT spending is anticipated to have been hurt by macroeconomic worries, escalating geopolitical tensions and high inflation. Additionally, NXPI has not seen the cyclical rebound that it had projected for the second half of 2024. Our model estimate for Automotive revenues is currently pegged at $1.73 billion, indicating a decline of 8.8% from the year-ago quarter. Our estimate for Communications Infrastructure & Others segment revenues in the fourth quarter of 2024 is pegged at $432.7 million, indicating a decline of 4.9% on a year-over-year basis.However, NXPI’s fourth-quarter performance is likely to have benefited from an expanding portfolio and positive momentum across the Industrial & Internet of Things (IoT), compensated by the demand in China and Asia Pacific. The recent launch of the i.MX 94 family, the newest addition to its i.MX 9 series of applications processors, designed for industrial control, programmable logic controllers, telematics, industrial and building & energy control is likely to have boosted its sales in the fourth quarter.What Our Proven Model Says for NXPI’s Q4 EarningsOur proven model does not conclusively predict an earnings beat for NXP Semiconductors this time. According to the Zacks model, the combination of a positive Earnings ESP and Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.NXPI has an Earnings ESP of 0.00% and carries a Zacks Rank #4 (Sell) at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.Stocks to ConsiderHere are some stocks worth considering, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.BILL Holdings, Inc. BILL has an Earnings ESP of +29.71% and flaunts a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.It is set to report second-quarter fiscal 2025 results on Feb. 6. The Zacks Consensus Estimate for BILL’s second-quarter fiscal 2025 earnings is pegged at 48 cents per share, up by a penny over the past 60 days, indicating a fall of 23.8% from the year-ago quarter’s reported figure. BILL shares have gained 24.1% over the past year.ServiceNow NOW has an Earnings ESP of +0.91% and carries a Zacks Rank #2 at present. It is set to report fourth-quarter results on Jan. 29. The Zacks Consensus Estimate for NOW’s fourth-quarter 2024 earnings per share is pegged at $3.58, up by a couple of pennies over the past 60 days. NOW shares have risen 48.9% over the past year.DoorDash DASH has an Earnings ESP of +35.67% and carries a Zacks Rank #2 at present. It is set to report fourth-quarter 2024 results on Feb. 11. The Zacks Consensus Estimate for DASH’s fourth-quarter earnings is pegged at 35 cents per share, up by a penny over the past 60 days, indicating a rise of 189.7% from the year-ago quarter’s reported figure. DASH shares have surged 74.9% over the past year.7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.3% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report NXP Semiconductors N.V. (NXPI): Free Stock Analysis Report ServiceNow, Inc. (NOW): Free Stock Analysis Report BILL Holdings, Inc. (BILL): Free Stock Analysis Report DoorDash, Inc. (DASH): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks