NXP Semiconductors NV is scheduled to report earnings after Monday’s close. The stock hit a record high of $239.91/share in 2021 and is currently trading near $189/share. The stock is prone to big moves after reporting earnings and can easily gap up if the numbers are strong. Conversely, if the numbers disappoint, the stock can easily gap down. To help you prepare, here is what the Street is expecting:
The company is expected to report a gain of $2.98/share on $3.00 billion in revenue. Meanwhile, the so-called Whisper number is a gain of $3.12/share. The Whisper number is the Street’s unofficial view on earnings.
A Closer Look At The Fundamentals:
The company has enjoyed robust triple digit earnings growth over the past four quarters which is a very healthy sign. Meanwhile, investors are happy to see that sales have steadily grown by double digits in each of the past three quarters.
A Closer Look At The Technicals:
The stock fell hard in January alongside the broader market and other semiconductor stocks. Right now, the bulls want to see the stock stop going down, then turn higher and get back above its 200 day moving average line. If the stock gaps up after earnings that could help pave the way for higher prices. On the other hand, the bears want to see the stock gap down and keep falling.
Pay Attention To How The Stock Reacts To The News:
From where I sit, the most important trait I look for during earnings season is how the market and a specific company reacts to the news. Remember, always keep your losses small and never argue with the tape.