NXPI Set to Report Q1 Earnings: What's in Store for the Stock?

NXP Semiconductors NXPI is scheduled to report first-quarter 2025 results on April 28, after market close.

NXPI expects first-quarter revenues between $2.725 billion and $2.925 billion. The Zacks Consensus Estimate for revenues is pegged at $2.83 billion, indicating a 9.6% year-over-year decline.

For the first quarter, NXP Semiconductors anticipates non-GAAP earnings per share between $2.39 and $2.79. The consensus mark for earnings is pinned at $2.59 per share, which remained unchanged over the past 30 days, suggesting a 20% 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 0.94%. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

Factors to Consider for NXPI

NXPI's first-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 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 $498.8 million, indicating a year-over-year decline of 13.1%. Our estimate of $350.9 million for the Mobile end market implies a rise of 0.5% 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 headwinds and escalating geopolitical tensions.

Our model estimate for Automotive revenues is currently pegged at $1.62 billion, indicating a decline of 10% from the year-ago quarter. Our estimate for the Communications Infrastructure & Others segment revenues in the first quarter of 2025 is pegged at $351.3 million, indicating a decline of 12% on a year-over-year basis.

However, NXPI’s first-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. With NXPI securing a €1 billion loan from the European Investment Bank to bolster its research, development, and innovation initiatives, the benefits of this funding are expected to have positively influenced the to-be-reported quarter's performance.

What Our Proven Model Says for NXPI’s Q4 Earnings

Our 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 #3 at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

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.

Qualcomm QCOM has an Earnings ESP of +0.86% and sports a Zacks Rank #2 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 April 30. The Zacks Consensus Estimate for QCOM’s first-quarter fiscal 2025 earnings per share is pegged at $2.82, up by 2 cents over the past 30 days. QCOM shares have plunged 9.9% over the past year.

Meta Platforms META has an Earnings ESP of +3.88% and flaunts a Zacks Rank #3 at present.

It is set to report first-quarter fiscal 2025 results on April 30. The Zacks Consensus Estimate for META’s first-quarter 2025 earnings is pegged at $5.21 per share, down by a penny over the past seven days, indicating a rise of 10.6% from the year-ago quarter’s reported figure. META shares have declined 20.8% over the past year.

Cognizant Technology Solutions CTSH has an Earnings ESP of +0.02% and carries a Zacks Rank #3 at present.

It is set to report first-quarter 2025 results on April 30. The Zacks Consensus Estimate for CTSH’s first-quarter earnings is pegged at $1.19 per share, unchanged over the past 60 days, indicating a rise of 6.3% from the year-ago quarter’s reported figure. CTSH shares have surged 8% over the past year.

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

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