NXP Semiconductors Set to Report Q1 2025 Earnings April 28
NXP Semiconductors (NASDAQ: NXPI) is set to report its first-quarter 2025 results on April 28, following the market’s close.
Revenue and Earnings Estimates
For this quarter, NXPI projects revenues to land between $2.725 billion and $2.925 billion. The Zacks Consensus Estimate anticipates revenues at $2.83 billion, reflecting a year-over-year decline of 9.6%.
On the earnings front, NXP expects non-GAAP earnings per share in the range of $2.39 to $2.79. The consensus estimate stands at $2.59 per share, unchanged over the past month and indicating a 20% year-over-year drop.
In the previous four quarters, NXPI has exceeded the Zacks Consensus Estimate three times and matched once, yielding an average surprise of 0.94%.
NXP Semiconductors N.V. Price and EPS Surprise
NXP Semiconductors N.V. price and EPS surprise | NXP Semiconductors N.V. Quote
Key Considerations for NXPI
NXPI’s anticipated performance may suffer from ongoing weakness in the Automobile and Communication Infrastructure markets. Prolonged inventory corrections among key Tier 1 auto clients, alongside slowing demand from European automotive manufacturers, are likely to negatively impact NXP’s results.
This situation mirrors the declining global manufacturing PMI trends and multiple profit warnings from major Western automakers, which are dampening demand across the industrial and Internet of Things sectors. Our estimates project NXPI’s Industrial and IoT revenues at $498.8 million, a year-over-year decrease of 13.1%, while the Mobile end market is expected to show a modest rise of 0.5% to $350.9 million.
In addition, the communications infrastructure sector’s slowdown, driven by rapid demand shifts toward gallium nitride products and lower global base station deployments, presents significant challenges for NXP. Customers’ IT budgets are likely to feel pressure from broader macroeconomic challenges and rising geopolitical tensions.
Our current estimate for Automotive revenues is $1.62 billion, showing a 10% decline from the same quarter last year. Additionally, for the Communications Infrastructure & Others segment, revenues are estimated at $351.3 million, reflecting a year-over-year decrease of 12%.
Despite these challenges, NXP’s first-quarter performance may benefit from an expanding product portfolio and positive trends in the Industrial & IoT sectors, particularly due to demand from China and the Asia Pacific. Furthermore, NXPI secured a €1 billion loan from the European Investment Bank, aimed at enhancing its research and development initiatives, which is expected to positively contribute to the upcoming quarter’s results.
What Our Model Forecasts for NXPI’s Q1 Earnings
Our model does not conclusively indicate a potential earnings beat for NXP Semiconductors this quarter. According to the Zacks model, a combination of a positive earnings ESP (Expected Surprise Prediction) and a Zacks Rank of #1 (Strong Buy), #2 (Buy), or #3 (Hold) typically enhances the probability of an earnings surprise. However, NXPI does not fit this profile.
Currently, NXPI has an earnings ESP of 0.00% and holds a Zacks Rank of #3.
Stocks Worth Considering
Here are some stocks featuring a favorable combination of factors that could lead to an earnings beat in this reporting cycle:
Qualcomm (NASDAQ: QCOM) has an earnings ESP of +0.86% and currently holds a Zacks Rank of #2. Set to report second-quarter fiscal 2025 results on April 30, QCOM’s Zacks Consensus Estimate for the quarter is $2.82 per share, up by 2 cents over the last month. The stock has seen a downturn of 9.9% over the past year.
Meta Platforms (NASDAQ: META) has an earnings ESP of +3.88% and holds a Zacks Rank of #3. Scheduled to announce first-quarter fiscal 2025 results also on April 30, the consensus estimate for META’s earnings is $5.21 per share, showing a slight decrease over the past week but a 10.6% increase from the previous year. META shares have declined by 20.8% in the past year.
Cognizant Technology Solutions (NASDAQ: CTSH) carries an earnings ESP of +0.02% and has a Zacks Rank of #3. It is poised to report first-quarter 2025 results on April 30, with a consensus estimate of $1.19 per share, unchanged in the last 60 days, indicating a 6.3% rise from the year-ago quarter. CTSH shares have appreciated by 8% over the past year.
The views and opinions expressed herein represent those of the author and do not necessarily reflect those of Nasdaq, Inc.
