Skip to main content

Market Overview

NXP Semiconductors Shows Signs Of Bottoming, 5 Analysts Dive Into Q1 Results

Share:
NXP Semiconductors Shows Signs Of Bottoming, 5 Analysts Dive Into Q1 Results

Shares of NXP Semiconductors NV (NASDAQ:NXPI) were up Tuesday after the company reported higher-than-expected earnings for its first quarter.

Here are some key analyst takeaways from the release.

  • KeyBanc Capital Markets analyst John Vinh cited "solid" NXP results for the first quarter
  • Cantor Fitzgerald analyst CJ Muse maintained an Overweight and price target of $290
  • Mizuho Securities analyst Vijay Rakesh reaffirmed a Neutral rating and price target of $225
  • Stifel analyst Tore Svanberg reiterated a Hold rating on the stock
  • Oppenheimer analyst Rick Schafer maintained an Outperform rating on the stock.

Check out other analyst stock ratings.

KeyBanc Capital Markets: Earnings came in at $3.24 per share, Vinh noted. This beat the consensus of $3.16 per share. A gross margin of 58.2% marginally surpassed market expectations of 58%.

The company expects revenue to remain sequentially flat in the second quarter. There are "signs of stabilization and bottoming cyclical demand in industrials," the analyst wrote.

Cantor Fitzgerald: The latest results did not constitute a "blowout quarter," Muse said. Instead, they represented "a perfectly executed report and guide." There were "cyclical fears surrounding the company's Automotive/Industrial business lines," Muse added.

While commentary from other players signaled a deteriorating backdrop from three months ago, NXP Semiconductors presented "a much better-than-feared outlook, particularly given that the company's Auto biz accounts for 55-60% of revenues," the analyst says. The limelight is currently on "gauging the sustainability of demand" and a potential recovery into the back half of the year, he added.

Mizuho Securities: NXP Semiconductors guided to gross margin expansion of 50 basis points (bps) in the second quarter, "pointing to solid execution," Rakesh said in a note.

"We believe 2024E could potentially be flat y/y (vs NXPI consensus top line down 1% y/y) with NXPI cautiously optimistic on 2H24," he added.

Stifel: All end-markets performed as expected and channel inventories remained low, Svanberg said. Management guided to a revenue range with $3.125 billion at the midpoint, he added.

"With Automotive data points still mixed, we view a more concrete 2H Auto recovery remains too early to call," the analyst further wrote.

Oppenheimer: "We see industrial growing in 2H but believe auto (58% of sales) likely a drag for most of 2024 as that vertical cyclically corrects," Schafer wrote in a note. "NXPI proactively keeping channel inventory lean, now 1.6 months vs. historical 2.5 (delta represents $500M)," he added.

Direct customer inventory is expected to be cleared in the second quarter, which sets the stage for a better performance in the back half of the year, the analyst said.

NXPI Price Action: Shares of NXP Semiconductors had risen by 3.92% to $256.82 at the time of publication on Tuesday.

Now Read: PayPal Raises Annual Outlook, Expands Q1 Margins Amid Competitive Pressure from Apple

Latest Ratings for NXPI

DateFirmActionFromTo
Feb 2022NeedhamMaintainsStrong Buy
Feb 2022Morgan StanleyMaintainsEqual-Weight
Feb 2022Raymond JamesMaintainsOutperform

View More Analyst Ratings for NXPI

View the Latest Analyst Ratings

 

Related Articles (NXPI)

View Comments and Join the Discussion!

Posted-In: Cantor Fitzgerald CJ Muse Expert IdeasAnalyst Color Earnings Misses Reiteration Analyst Ratings Movers

Latest Ratings

StockFirmActionPT
SEDGB of A SecuritiesMaintains411.0
PTLOPiper SandlerMaintains28.0
AOUTLake StreetMaintains26.0
RAPTPiper SandlerMaintains52.0
OCXLake StreetMaintains6.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
SPAC
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com