What to expect from NXP Semiconductors in Q2 2024?

NXP Semiconductors NV (NXPI) is a leading global semiconductor company with a market capitalization of $69.62 billion. Headquartered in Eindhoven, Netherlands, NXP operates in multiple countries, providing innovative solutions for the automotive, industrial, mobility, and communications infrastructure markets. The company is scheduled to report fiscal second-quarter 2024 earnings after the market close on Monday, July 22.

Ahead of the event, analysts expect NXPI to report earnings of $2.82 per share, down 7.2% from $3.04 per share in the year-ago quarter. The company has consistently topped Wall Street earnings per share estimates in its last four quarterly reports.

The company’s adjusted earnings of $2.85 per share for the last reported quarter were 2.5% below consensus estimates. It was a weaker quarter for the company due to an increase in inventory levels.

For fiscal 2024, analysts forecast NXPI will post earnings per share of $12.47, down 1.8% from earnings per share of $12.70 in fiscal 2023. However, in fiscal 2025, earnings per share are expected to increase 14.3% year-over-year to $14.25.

NXPI shares are up 20% YTD, outperforming the broader S&P 500 Index ($SPX)’s 16.1% return. However, the stock has lagged the VanEck Semiconductor ETF (SMH), which has gained 54.6% in the same period.

NXP Semiconductors shares rose more than 3% after the company reported first-quarter results on April 30. Revenue of $3.13 billion was in line with Wall Street expectations. For the second quarter, NXPI is forecasting revenue of $3.025 billion to $3.225 billion, in line with analyst estimates of $3.12 billion.

The consensus view on NXPI stock is bullish, with an overall rating of “Moderate Buy.” Of the 25 analysts covering the stock, 14 recommend a “Strong Buy” rating, two recommend a “Moderate Buy,” eight analysts give a “Hold,” and one recommends a “Strong Sell.” This setup is slightly more bullish than three months ago, when the stock had 12 “Strong Buy” ratings.

The average analyst price target for NXPI is $282.62, indicating a potential upside of 3.8% from current levels.

On the date of publication, Rashmi Kumari did not hold (directly or indirectly) a position in any of the securities mentioned in this article. All information and data in this article is for informational purposes only. For more information, please refer to Barchart’s Disclosure Policy here.