QUALCOMM’s Upcoming Earnings: Analysts Anticipate Increased Profits
With a market cap of $190.7 billion, QUALCOMM Incorporated (QCOM) stands as a prominent player in the wireless technology sector. The company designs innovative chips for mobile devices, automotive applications, and AI, while also licensing critical patents related to 3G, 4G, and 5G technologies. Based in San Diego, California, QUALCOMM is poised to release its fiscal Q4 earnings results after the market closes on Wednesday, November 6.
Profit Expectations on the Rise
Ahead of the earnings announcement, analysts forecast that the chipmaker will report a profit of $2.01 per share. This represents a significant increase of 26.4% compared to $1.59 per share from the same quarter last year. In fact, QUALCOMM has outperformed Wall Street’s bottom-line expectations in the last four quarters. Most recently, the company beat the consensus EPS estimates by an impressive 12.2%.
Future Growth Projections
Looking ahead to fiscal 2024, predictions indicate QCOM will achieve an EPS of $8.02, marking a near 21% increase from $6.63 in fiscal 2023.
Stock Performance Analysis
In the last 52 weeks, QCOM shares have increased by 54%, outperforming the S&P 500 Index’s ($SPX) 35.9% rise and the Technology Select Sector SPDR Fund’s (XLK) 37.7% increase during the same timeframe.
Concerns Following Q3 Report
Despite announcing a better-than-expected Q3 adjusted EPS of $2.33 and revenue of $9.4 billion on July 31, Qualcomm’s shares fell 9.4% the next day. This drop stemmed from apprehensions regarding its guidance for the upcoming quarter. The company projected only mid-single-digit revenue growth, disappointing expectations for double-digit growth. The smartphone market remains crucial, representing 73% of Qualcomm’s revenue, sparking fears of stagnant demand. Additionally, challenges like tightening U.S. export restrictions to Huawei and an 8% decline in IoT chip sales added to investors’ worries.
Analysts’ Outlook and Ratings
Overall, analysts maintain a cautious yet optimistic view of QCOM stock, giving it a “Moderate Buy” rating. Out of the 30 analysts covering the company, 16 recommend a “Strong Buy,” one suggests a “Moderate Buy,” 12 advise a “Hold,” and one rates it a “Strong Sell.” The average target price for QCOM is $213.83, indicating a potential upside of 25.1% from current levels.
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On the date of publication, Sohini Mondal did not hold (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is for informational purposes only. For more information, please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
