02:46 PM EDT, 10/30/2024 (MT Newswires) -- NXP Semiconductors' ( NXPI ) Q3 results will be in line, but Q4 outlook looks weaker due to sluggish demand in the automotive and industrial sectors that account for 75% of sales, Oppenheimer said in an earnings preview on Wednesday.

NXP Q3 results are scheduled for Monday.

The firm said that the automotive segment constitutes 55% of NXP's revenue and is driven by increased content per vehicle, particularly in radar, battery management systems, and the S32 platform, despite overall declines in global vehicle sales.

"Auto data points outside China remain grim reflecting anemic demand...China EV a rare bright spot," the firm said.

Sales in industrials and internet of things will likely grow in Q3, led by performance in China, but the business has limited near-term growth, Oppenheimer added.

The firm expects the communications segment, particularly 5G-related sales, to decline due to weak demand. However, legacy products and security cards will offset some of the declines.

Oppenheimer reiterated its outperform rating on NXP's stock and kept the price target at $330.

Company shares fell 3% in recent trading.

Price: 247.52, Change: -8.06, Percent Change: -3.15