Analysts Have Made A Financial Statement On NXP Semiconductors N.V.'s (NASDAQ:NXPI) First-Quarter Report

NXP Semiconductors N.V. (NASDAQ:NXPI) shareholders are probably feeling a little disappointed, since its shares fell 4.8% to US$184 in the week after its latest first-quarter results. It looks like the results were a bit of a negative overall. While revenues of US$2.8b were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 2.9% to hit US$1.92 per share. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on NXP Semiconductors after the latest results.

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After the latest results, the consensus from NXP Semiconductors' 30 analysts is for revenues of US$11.9b in 2025, which would reflect a discernible 3.5% decline in revenue compared to the last year of performance. Statutory earnings per share are forecast to dip 6.7% to US$8.72 in the same period. Before this earnings report, the analysts had been forecasting revenues of US$11.9b and earnings per share (EPS) of US$9.37 in 2025. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a minor downgrade to their earnings per share forecasts.

See our latest analysis for NXP Semiconductors

The consensus price target held steady at US$235, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on NXP Semiconductors, with the most bullish analyst valuing it at US$301 and the most bearish at US$170 per share. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await NXP Semiconductors shareholders.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 4.7% by the end of 2025. This indicates a significant reduction from annual growth of 9.2% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 16% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - NXP Semiconductors is expected to lag the wider industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that in mind, we wouldn't be too quick to come to a conclusion on NXP Semiconductors. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for NXP Semiconductors going out to 2027, and you can see them free on our platform here..

Even so, be aware that NXP Semiconductors is showing 1 warning sign in our investment analysis , you should know about...

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.