NXP Semiconductors NV (NXPI is set to report second-quarter 2017 results on Aug 2. Last quarter, the company delivered a positive earnings surprise of 45.9%. Notably, NXP Semiconductors outperformed the Zacks Consensus Estimate in three of the trailing four quarters, with an average positive earnings surprise of 12.8%.
Let’s see how things are shaping up prior to this announcement.
Factors to Consider
NXP Semiconductors, a global semiconductor company, is known for automotive and chip identification business and has seen massive growth in the portable device segment in the last one year.
Continued strong adoption of tablets and smartphones, automotive electronics and the emergence of the new category of wearables provided a boost to the demand for processing and sensing devices that run them.
With the acquisition of Freescale Semiconductor, NXP Semiconductors has now become the world’s leading provider of automotive semiconductor solutions and general purpose microcontroller products.
Nonetheless, macroeconomic weakness, competition from Xilinx Inc. XLNX and Lattice Semiconductor Corp., consolidation in the telecom market, declining margins and volatility in the semiconductor market remain headwinds.
NXP Semiconductors N.V. Price and EPS Surprise
Earnings Whispers
Our proven model does not conclusively show that NXP Semiconductorsis likely to beat earnings this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. But that is not the case here, as you will see below. You can see the complete list of today’s Zacks #1 Rank stocks here.
Zacks ESP: NXP Semiconductors’s Earnings ESP is +1.52%. This is because the company’s Most Accurate estimate is $1.34 per share while the Zacks Consensus Estimate is pegged lower at $1.32 per share. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: NXP Semiconductorscarries a Zacks Rank #4 (Sell). We caution against stocks with a Zacks Rank #4 and 5 (Sell rated) going into the earnings announcement, especially when the company is witnessing negative estimate revisions.
Stocks to Consider
Here are some companies you may consider as our proven model shows they have the right combination of elements to post an earnings beat this quarter:
Fiserv, Inc. FISV has an Earnings ESP of +1.63%. It carries a Zacks Rank #2.
Symantec Corporation SYMC, with an Earnings ESP of +16.67%, carries a Zacks Rank #2.
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