'Solid, Decent' Results For NXP Semiconductors: 4 Analysts Provide Takeaways On Q4

Shares of NXP Semiconductors NV NXPI rose in Monday’s extended trading after the company released its fourth-quarter results broadly in line with expectations.

Here are four analyst takes on the Dutch semiconductor designer and manufacturer.

Bernstein

Analyst Stacy Rasgon maintained a Market Perform rating and a price target of $175.

The latest results were “decent,” Rasgon wrote in a note. Commentary in the release suggested weakness in mobile and consumer IoT with automotive strength, but a closer read indicates those statements appear past-tense, and a little math on the guide suggests the potential for auto to be down decently sequentially (perhaps mid- to high-single digits?) in Q1 even amid the potential for further weakness in industrial.”

Morgan Stanley

Analyst Joseph Moore reiterated an Equal-Weight rating and a price target of $174.

The December quarter revenues and earnings were “slightly ahead of expectations,” Moore said. “Notably, the company remains near the higher end of their updated target range of 55-58%,” he added.

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“The automotive and industrial end markets were again the strongest in the quarter, despite industrial weakening materially on a sequential and y/y basis, while mobile surprised slightly vs our estimate, but saw muted sequential growth, with communications coming in weaker than expected,” the analyst stated.

Raymond James

Analyst Melissa Fairbanks maintained an Outperform rating for the stock.

The company’s “solid” quarterly results were “generally consistent with expectations,” Fairbanks mentioned in a note. “Not surprisingly, the March quarter outlook calls for a below seasonal drop in revenue – down 9% q/q,” she added.

Oppenheimer

Analyst Rick Schafer reiterated an Outperform rating.

Auto remained sequentially flat, “breaking its streak of nine consecutive quarters of growth,” Schafer wrote. He believes the segment is resilient “but not immune to the broader macro slowdowns.”

Industrial & IoT declined, impacted by China’s Covid-related lockdowns in 2022, the analyst stated.

NXPI Price Action: Shares of NXP Semiconductors had risen by 0.06% to $179.59 at the time of publication Tuesday.