NXP Semiconductors (NXPI) Expected to Beat Earnings Estimates: What to Know Ahead of Q3 Release

Core Viewpoint - Wall Street anticipates a year-over-year decline in earnings for NXP Semiconductors due to lower revenues, with actual results being crucial for stock price movement [1][2]. Earnings Expectations - NXP is expected to report quarterly earnings of $3.11 per share, reflecting a -9.9% change year-over-year, with revenues projected at $3.15 billion, down 3% from the previous year [3]. - The earnings report is scheduled for October 27, and better-than-expected results could lead to a stock price increase, while a miss may result in a decline [2]. Estimate Revisions - The consensus EPS estimate has been revised 0.26% higher in the last 30 days, indicating a slight bullish sentiment among analysts [4]. - The Most Accurate Estimate for NXP is higher than the Zacks Consensus Estimate, resulting in an Earnings ESP of +1.11%, suggesting a likelihood of beating the consensus EPS estimate [12]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive Earnings ESP reading is a strong predictor of an earnings beat, especially when combined with a Zacks Rank of 1 (Strong Buy), 2 (Buy), or 3 (Hold) [10]. - NXP currently holds a Zacks Rank of 2, enhancing the predictive power of its positive Earnings ESP [12]. Historical Performance - NXP has consistently beaten consensus EPS estimates, achieving this in the last four quarters, including a +2.26% surprise in the most recent quarter [13][14]. Conclusion - NXP is positioned as a compelling earnings-beat candidate, but investors should consider other factors influencing stock performance beyond earnings results [15][17].