Texas Roadhouse earnings missed by $0.05, revenue topped estimates
On Tuesday, Needham analysts adjusted their price target for NXP Semiconductors NV (NASDAQ: NASDAQ:NXPI) to $230 from the previous $230, while maintaining a "Buy" rating on the stock. Currently trading at $201.71 with a market capitalization of $51 billion, NXP has seen 19 analysts revise their earnings expectations downward, according to InvestingPro data. The revision followed NXP Semiconductors’ fourth-quarter results for 2024 and its first-quarter guidance for 2025, which presented a mixed outlook despite steady performance in the Automotive sector.
The analysts noted that visibility remains challenging, especially in the Automotive segment, where the turns business—that is, orders filled from inventory rather than produced to order—has been increasing for three consecutive quarters. With current annual revenue of $12.93 billion and a strong current ratio of 2.35, the company maintains solid financial health despite these challenges. Consequently, the analysts’ calendar year 2027 revenue estimate for NXP is now below the company’s target model of $15 billion, pending a clearer forecast.
Additionally, the analysts highlighted that Freescale’s networking products, which account for roughly 30% of the Communication Infrastructure segment, are accelerating their end-of-life (EoL) process. This factor, along with annual price concessions and lower fall-through, has led to a slight decrease in gross margins for the first half of 2025. The company’s current gross margin stands at 57.24%, and despite these challenges, the analysts anticipate that a combination of cost input declines and better absorption will support their fiscal year 2025 gross margin assumption of 56.9%.
The report also mentioned that tariffs were not included in the company’s guidance. The analysts believe that most tariff actions would have an indirect impact on NXP Semiconductors, noting that current China tariffs have an immaterial effect on the company.
In light of these factors, Needham has lowered its earnings per share (EPS) estimate for the calendar year 2026 to $13.10 and adjusted the price target accordingly. The new price target of $230 is based on an approximate 17.5 times multiple of the revised EPS estimate.
In other recent news, NXP Semiconductors NV has been the subject of several analytical reports and has secured a major loan for its research and development initiatives. Stifel analysts maintained a Hold rating on NXP Semiconductors with a price target of $231. They noted a 4.3% decrease in the company’s revenue for the December quarter, as well as a significant decline in quarterly free cash flow. Additionally, Stifel pointed out a lower outlook for the March quarter, with a revenue midpoint of $2.82 billion.
On the other hand, Cantor Fitzgerald reiterated an Overweight rating on NXP Semiconductors, holding a price target of $250. The firm highlighted that the company’s earnings per share exceeded forecasts, despite a slight revenue shortfall in the first quarter. Bernstein analysts maintained a Market Perform rating on the company with a price target of $225, noting that the company’s fourth-quarter 2024 results closely matched consensus estimates.
In a significant development, the European Investment Bank (EIB) has agreed to lend €1 billion to NXP Semiconductors. The loan, which extends over a six-year period, is aimed at propelling NXP’s research, development, and innovation activities in several European Union member states. These recent developments are part of the ongoing narrative surrounding NXP Semiconductors, a company that continues to attract the attention of investors and analysts alike.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.