Wireless chipmaker Qualcomm (NASDAQ: QCOM) will be reporting earnings this Wednesday after the bell. Here’s what you need to know.
Qualcomm met analysts’ revenue expectations last quarter, reporting revenues of $10.37 billion, up 10.4% year on year. It was a mixed quarter for the company, with a solid beat of analysts’ adjusted operating income estimates but an increase in its inventory levels.
Is Qualcomm a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting Qualcomm’s revenue to grow 5.2% year on year to $10.77 billion, slowing from the 18.2% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.87 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Qualcomm has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 2.6% on average.
Looking at Qualcomm’s peers in the processors and graphics chips segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Qorvo delivered year-on-year revenue growth of 1.1%, beating analysts’ expectations by 1.9%, and Intel reported revenues up 2.8%, topping estimates by 3.7%. Intel’s stock price was unchanged following the results.
Read our full analysis of Qorvo’s results here and Intel’s results here.
There has been positive sentiment among investors in the processors and graphics chips segment, with share prices up 3.4% on average over the last month. Qualcomm is up 7% during the same time and is heading into earnings with an average analyst price target of $180.05 (compared to the current share price of $180.40).
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