NXP Semiconductors (NXPI) Q4 Earnings: What's In Store?

NXP Semiconductors N.V. (NASDAQ:NXPI) is slated to release fourth-quarter fiscal 2017 results on Feb 7. The question lingering on investors’ minds is if this semiconductor provider will be able to deliver a positive surprise this time around.

Notably, NXP has a mixed earnings surprise history. In the trailing four quarters, the stock surpassed the Zacks Consensus Estimate twice and fell short on the other two occasions. It has an average positive earnings surprise of 2.97%.

Let’s see how things are shaping up prior to this announcement.

Factors to Consider

NXP Semiconductors, which is known for its automotive and chip identification business, is expanding its footprint in the Internet of Things (IoT) market. In November 2017, the company announced that its microprocessors and microcontrollers will be showcased in a number of IoT and secure edge processing applications based on Amazon (NASDAQ:AMZN) Web Services (AWS).

During the soon-to-be reported quarter, the company introduced "LPC54018 MCU-based IoT module with onboard Wi-Fi and support for newly launched Amazon FreeRTOS on AWS". It also announced a strategic partnership with the cloud computing business unit of Alibaba (NYSE:BABA) for the development of smart secure devices and IoT products.

Additionally, NXP also agreed to join the “open autonomous driving platform” of Baidu (NASDAQ:BIDU) called Apollo. Per the agreement, NXP’s BlueBox development platform will be used by companies and NXP will also be providing semiconductor products for the development of autonomous vehicles.

Notably, the company’s acquisition by Qualcomm (NASDAQ:QCOM) is underway and NXP shareholders are demanding an increase in bid.

What the Zacks Model Unveils?

Our proven model does not conclusively show that NXP is likely to beat estimates this quarter, as it does not possess the key components. 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. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

NXP carries a Zacks Rank #3 (Hold) and has an Earnings ESP of 0.00%.

You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for fourth quarter earnings is pegged at $1.82 per share. Additionally, analysts polled by Zacks project revenues of roughly $2.37 billion.

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