NXPI Likely to Beat Q3 Earnings Estimates: How to Play the Stock

NXP Semiconductors NXPI is scheduled to report third-quarter 2025 results on Oct. 27, after market close.

NXPI expects third-quarter revenues between $3.05 billion and $3.25 billion. The Zacks Consensus Estimate for revenues is pegged at $3.15 billion, indicating a 2.6% year-over-year decline.

For the third quarter, NXP Semiconductors anticipates non-GAAP earnings per share between $2.89 and $3.30. The consensus mark for earnings is pinned at $3.11 per share, up by a cent over the past seven days, suggesting a 9.9% year-over-year decline.

In the trailing four quarters, NXPI’s earnings beat the Zacks Consensus in each of the trailing four quarters, with the average surprise being 1.5%.

NXP Semiconductors N.V. Price and EPS Surprise

NXP Semiconductors N.V. price-eps-surprise | NXP Semiconductors N.V. Quote

Factors to Consider for NXPI

NXP Semiconductors’ third-quarter performance is expected to reflect stabilizing demand in Automotive and continued softness in Communication Infrastructure end markets. Slower recovery among European car OEMs and ongoing inventory normalization at Tier 1 customers are likely to have affected NXP Semiconductors’ prospects in the to-be-reported quarter. Our model estimate for Automotive revenues is currently pegged at $1.8 billion, indicating a decline of 0.2% from the year-ago quarter.

These trends align with broader macro indicators, such as softer global manufacturing PMIs and cautious outlooks from major Western automakers, which are affecting demand in the industrial and Internet of Things (IoT) markets. However, positive demand momentum across China and the Asia Pacific regions might have partially offset the negative impact from the aforementioned factor. Our model estimate for NXPI’s Industrial & IoT revenues is pegged at $512 million, indicating a year-over-year decline of 9.1%.

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. Our estimate for the Communications Infrastructure & Others segment revenues for the third quarter of 2025 is pegged at $411.8 million, indicating a decline of 8.7% on a year-over-year basis.

Customers' IT spending is anticipated to have been hurt by macroeconomic headwinds and escalating geopolitical tensions. Our estimate of $402.7 million for the Mobile end market implies a decline of 1% from the year-ago quarter.

What Our Proven Model Says for NXPI’s Q3 Earnings

Our proven model conclusively predicts an earnings beat for NXP Semiconductors this time. 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, which is the exact case here.

NXP Semiconductors has an Earnings ESP of +1.11% and carries a Zacks Rank #2 at present. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

Other 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 reporting cycle.

Meta Platforms META has an Earnings ESP of +8.48% and sports a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Meta Platforms is slated to report third-quarter 2025 results on Oct. 29. The Zacks Consensus Estimate for META’s third-quarter 2025 earnings is pegged at $6.59 per share, up by a cent over the past seven days, indicating a rise of 9.3% from the year-ago quarter’s reported figure.

Reddit Inc. RDDT has an Earnings ESP of +20.17% and sports a Zacks Rank #1 at present.

It is set to report third-quarter 2025 results on Oct. 30. The Zacks Consensus Estimate for RDDT’s third-quarter earnings is pegged at 52 cents per share, unchanged over the past 30 days, indicating an increase of 225% from the year-ago quarter’s reported figure. 

Intel INTC has an Earnings ESP of +116.7% and a Zacks Rank #3 at present. 

Intel is set to report third-quarter fiscal 2025 results on Oct. 23. The Zacks Consensus Estimate for INTC’s third-quarter fiscal 2025 earnings has remained unchanged at breakeven over the past 30 days, indicating a rise of 100% from the year-ago quarter’s reported figure.

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This article originally published on Zacks Investment Research (zacks.com).

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