NXP Semiconductors Struggles Amid Market Gains and EPS Decline

NXP Semiconductors has underperformed relative to the S&P 500 and semiconductor sector. Despite exceeding EPS expectations, revenue remains stagnant. Analysts exhibit varying opinions, reflecting potential challenges ahead for NXPI's stock performance.

Date: 18-11-2024

AI Rating: 0

NXP Semiconductors N.V. (NXPI) has been lagging behind both the broader market and its semiconductor peers. The report highlights that NXPI shares gained only 8.1% over the past 52 weeks, compared to a remarkable 30.4% gain in the S&P 500 Index and a 14.2% rise in the S&P Semiconductor SPDR. In 2024, the decline of 5.5% for NXPI contrasts sharply with the 23.1% gain of the S&P 500 year-to-date.

Despite reporting an adjusted EPS of $3.45 that surpassed market expectations, NXPI's stock fell more than 5% after the earnings announcement. This suggests that the market's reaction was driven by broader concerns rather than just the EPS figure. The company anticipates a further decline in EPS of 10.5% year-over-year for the fiscal year, indicating potentially diminishing profitability that could unsettle investors.

NXPI's earnings surprise history appears mixed, having beaten consensus estimates three out of the last four quarters, which may lend some credibility to future expectations, but ongoing declines raise questions regarding future performance. Furthermore, the report indicated that analysts' consensus rating for NXPI is a “Moderate Buy,” with 16 “Strong Buy” ratings, contrasting with a single “Strong Sell.

Stocks: NXPI