NXP Semiconductors Stock Drags Ahead Of Q4 Earnings: Analysts Point To ‘Choppy’ Recovery On Uncertain Demand, But Retail Sentiment Soars
Synopsis
NXP Semiconductors is expected to post a year-on-year decline in both earnings and revenue during the fourth quarter, according to Stocktwits data.
Shares of NXP Semiconductors NV (NXPI) were in focus on Monday ahead of the company’s fourth-quarter earnings scheduled to be announced during after-market hours.
NXP stock was down nearly 2% during mid-day trade as investors processed the ongoing tariff battle between the U.S. and some of its largest trading partners, including China, Canada, and Mexico.
While President Donald Trump announced a pause on Mexico tariffs for a month amid ongoing discussions with his Mexican counterpart, the broader market sentiment remained on edge.
The NXP stock price was down nearly 1.5%, whereas the Nasdaq 100 index was down nearly 0.8%, recovering from the day’s low of a 2.25% fall.
Earlier in January, analysts at Susquehanna and Barclays reduced their price targets for the NXP stock, according to TheFly.
The underlying thesis for the reduction was a “choppy” broad-based recovery due to uncertain demand and uneven inventory progress.
While Susquehanna has a price target of $235, Barclays analysts have it set at $230 – this still implies an upside in the range of 12% to 14%, based on current price levels.
According to Stocktwits data, NXP Semiconductors is expected to post earnings per share (EPS) of $3.16, down more than 13% year over year.
Its revenue is expected to come in at $3.12 billion, down more than 8% year-on-year.
Despite the cautious sentiment among analysts, the retail mood remained upbeat on Stocktwits, rising to ‘extremely bullish’ (80/100) territory from ‘bearish’ a day ago. This was accompanied by a surge in chatter ahead of Monday’s earnings.
One user on the platform has a price target of $240.
NXP Semiconductors’ stock price has been on a downward path recently, falling nearly 13% over the past six months. Its performance over the past year has been relatively better, with a decline of a little over 7%.
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