QUALCOMM Incorporated (NASDAQ:QCOM) shares are trading lower Thursday after the company reported first-quarter financial results and issued second-quarter guidance below estimates on Wednesday after the market closed.
Quarterly Results And Outlook
Qualcomm reported adjusted earnings per share of $3.50, beating the consensus estimate of $3.40. In addition, the company reported revenue of $12.25 billion, beating the consensus estimate of $12.18 billion.
Qualcomm said revenue from its Qualcomm CDMA Technologies segment totaled approximately $10.47 billion in the first quarter, while revenue from its Qualcomm Technology Licensing segment came in at about $1.79 billion.
The company reported operating income of $3.37 billion and net income of $3.00 billion for the quarter. GAAP diluted earnings per share were $2.78.
Qualcomm ended the quarter with $7.21 billion in cash and cash equivalents.
The company sees second-quarter adjusted earnings per share of $2.45 to $2.65, versus the consensus estimate of $2.88. Furthermore, it sees revenue of $10.20 billion to $11.00 billion, versus the consensus estimate of $11.10 billion.
Analyst Changes
Qualcomm carries a consensus rating of Buy and a consensus price target of $187.25. Recent actions following the earnings report include:
- Mizuho analyst Vijay Rakesh maintained a Neutral rating on Qualcomm and lowered the price target from $160 to $140.
- Rosenblatt analyst Kevin Cassidy maintained a Buy rating on Qualcomm and lowered the price target from $225 to $190.
Technical Analysis Of Qualcomm
The stock’s performance is further influenced by its positioning relative to key technical indicators. With shares trading 15.3% below their 20-day simple moving average (SMA) and 20.7% below the 100-day SMA, the technical outlook appears weak. Over the past 12 months, Qualcomm has decreased by 15.34%, and it is currently positioned closer to its 52-week lows than highs.
The RSI is at 30.35, indicating neutral territory, while the MACD is below its signal line, suggesting bearish pressure on the stock. The combination of neutral RSI and bearish MACD indicates mixed momentum, reflecting uncertainty among traders.
Benzinga Edge Rankings
Below is the Benzinga Edge scorecard for Qualcomm, highlighting its strengths and weaknesses compared to the broader market:
- Value: Weak (Score: 21.45) — Trading at a steep premium relative to peers.
- Quality: Neutral (Score: 63.14) — Balance sheet remains healthy.
- Momentum: Weak (Score: 18.65) — Stock is underperforming the broader market.
The Verdict: Qualcomm’s Benzinga Edge signal reveals a challenging environment for the stock. While the Quality score indicates some stability, the weak Value and Momentum scores suggest that the stock may struggle to regain upward momentum in the near term.
Qualcomm Shares Fall Lower
QCOM Price Action: At the time of writing, Qualcomm shares are trading 10.90% lower at $132.65, according to data from Benzinga Pro.
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