"Shares are up 12% over the past 6 monthss , still below analysts' $258 target, as the market anticipates clearer evidence that the company's cyclical bottom is behind it. CEO Kurt Sievers and President Rafael Sotomayor described the quarter as the start of an "emerging upcycle," citing improving orders across industrial and IoT and an approaching normalization in Western Tier 1 automotive inventory."
"Management has flagged "early signs of a new upcycle," with improved short-cycle orders and backlog visibility. Wall Street expects Q3 revenue of $3.16 billion and EPS of $3.12, implying a ~10% year-over-year EPS decline as the auto cycle stabilizes. While the company's 60% automotive revenue mix has weighed on growth during the downturn, management believes it is "coming closer to shipping to natural end demand", a key turning point for earnings leverage heading into 2026."
NXP Semiconductor is reporting Q3 results amid cautious optimism as management signals early signs of an emerging upcycle. Short-cycle orders and backlog visibility have improved, and Western Tier 1 automotive inventory is approaching normalization. Wall Street expects Q3 revenue of $3.16 billion and normalized EPS of $3.12, implying about a 10% year-over-year EPS decline. The company's 60% automotive revenue mix has weighed on growth, but management expects shipments to move closer to natural end demand, a turning point for earnings leverage toward 2026. NXP has exceeded EPS consensus for four consecutive quarters and FY2025–FY2026 estimates show recovery.
Read at 24/7 Wall St.
Unable to calculate read time
Collection
[
|
...
]