As Stock Is Down 34% This Year, 3 NXP Semiconductors Analysts Weigh In On Results, Guidance

Zinger Key Points
  • NXP Semiconductors reported “solid” results, with better-than-expected margins, one analyst said.
  • Persisting supply constraints could impact the company’s fourth-quarter performance, another analyst stated.
As Stock Is Down 34% This Year, 3 NXP Semiconductors Analysts Weigh In On Results, Guidance

NXP Semiconductors NV NXPI Monday announced mixed third-quarter earnings and downbeat guidance.

Raymond James On NXP Semiconductors

Analyst Melissa Fairbanks maintained an Outperform rating on the stock.

NXP Semiconductors reported “solid” quarterly results, with in-line revenues and better-than-expected margins “driving an EPS beat versus our model,” Fairbanks said in a note.

“Auto remains the lead driver for revenue growth, while flattish trends in Industrial/IoT could be signs of slowing demand (consistent with peers), after several quarters of growth,” she added.

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“Not surprisingly, management is taking a more cautious outlook in the near term, guiding December quarter revenue down 4% on a sequential basis,” the analyst wrote, while adding that the conservatism in the outlook reflected “growing macro uncertainty.”

Check out other analyst stock ratings.

Mizuho Securities On NXP Semiconductors

Analyst Vijay Rakesh reiterated a Neutral rating and price target of $200.

“NXPI reported an in-line SepQ,” with strength in Auto and Industrial, Rakesh said. The company indicated that “it is now seeing some softness in consumer IoT with the weaker macro backdrop,” he added.

“With high Auto/Industrial revenue exposure in China (~50-60%+), we also believe an extension of zero-Covid policies could weigh on the broader China Auto/Industrial market outlook,” the analyst further noted.

KeyBanc Capital Markets On NXP Semiconductors

Analyst John Vinh wrote in a note, “3Q results reflect resilient demand in auto and industrial but growing macro headwinds in IoT end markets; supply constraints are expected persist into 2023.”

“Guidance implies EPS of $3.65, below our estimate of $3.77 and above the consensus of $3.56,” he added.

NXPI Price Action: Shares of NXP Semiconductors had risen by 3.24% to $150.82 at the time of publication Tuesday.

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Photo: Courtesy of nxp.com

Posted In: CNBCJohn VinhKeyBanc Capital MarketsMelissa FairbanksMizuho SecuritiesRaymond JamesVijay RakeshAnalyst ColorEarningsNewsReiterationAnalyst RatingsMoversTrading Ideas