Qualcomm Earnings: What To Look For From QCOM

Wireless chipmaker Qualcomm (NASDAQ:QCOM) will be reporting results this Wednesday after market hours. Here’s what investors should know.

Qualcomm beat analysts’ revenue expectations by 1.8% last quarter, reporting revenues of $10.84 billion, up 15.4% year on year. It was a slower quarter for the company, with an increase in its inventory levels and revenue guidance for next quarter meeting analysts’ expectations.

Is Qualcomm a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Qualcomm’s revenue to grow 10.2% year on year to $10.35 billion, in line with the 11.1% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.71 per share.

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Qualcomm has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 2.5% on average.

Looking at Qualcomm’s peers in the semiconductors segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Penguin Solutions delivered year-on-year revenue growth of 7.9%, missing analysts’ expectations by 1.4%, and Intel reported flat revenue, topping estimates by 7.8%. Penguin Solutions traded up 10.6% following the results while Intel was down 8.4%.

Read our full analysis of Penguin Solutions’s results here and Intel’s results here.

There has been positive sentiment among investors in the semiconductors segment, with share prices up 4.9% on average over the last month. Qualcomm is up 1.3% during the same time and is heading into earnings with an average analyst price target of $175.83 (compared to the current share price of $161.32).

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