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Earnings preview for Monday (ON, NXPI, WMG)

Moomoo News ·  Feb 1, 2021 03:19  · Earnings Preview

ON Semiconductor Q4 2020 earnings preview

$ON Semiconductor Corp(ON.US)$ is a semiconductors supplier company, formerly in the Fortune 500, but dropping into the Fortune 1000in 2020.

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ON Semiconductor's strength in the automotive segment positions it well to deliver 4Q sales and EPS that could top Bloomberg consensus' $1.35 billion sales and 28-cent EPS estimates. 

Global auto chip demand has been pronounced, resulting in shortages. While the automotive segment accounts for roughly one-third of sales, the global chip demand strength has been broad-based, which would help expedite ON's industrial and consumer recoveries, and complement computing and cloud power momentum.

-Woo Jin Ho, Bloomberg analyst

Warner Music Q1 2021 earnings preview

$Warner Music Group(WMG.US)$ is an American multinational entertainment and record label conglomerate headquartered in New York City. 

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NXP Semiconductors Q4 2020 earnings preview

$NXP Semiconductors NV(NXPI.US)$ is a Dutch-American semiconductor manufacturer with headquarters in Eindhoven, Netherlands and Austin, United States.

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Communications infrastructure, aided by 5G builds, may also surprise positively, aiding sales and margin. Component shortages could extend demand in autos in 2021, and NXP could benefit from increased pricing. 

Our analysis suggests 8% Auto segment sales growth in 4Q20, accelerating to 15% in 1Q and 25% for 2021. The Mobile segment may expand by 18% in 2021 and Industrial 15%. Communications infrastructure may realize higher-than-consensus growth of 11% in the year, despite a single-digit decline in 4Q.

Gross margin may steadily expand through 2021 to 55% from 53% amid higher sales. Buybacks of about $2 billion in 2021 could produce EPS of $8.73, compared with consensus' $8.26.

-Anand Srinivasan, Bloomberg analyst

Source: Bloomberg

Editor: Mia

Disclaimer: This content is for informational and educational purposes only and does not constitute a recommendation or endorsement of any specific investment or investment strategy. Read more
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