Qualcomm Stock Tests Technical Support Ahead of Earnings

Qualcomm Inc (NASDAQ:QCOM) is scheduled to report fiscal third-quarter earnings after the close on Wednesday, July 29. According to Zacks Research, analysts expect earnings of $2.22 per share on revenue of $9.71 billion. Investors will be watching for updates on demand across the company's smartphone, automotive, and AI businesses.

QCOM is succumbing to broader tech headwinds today, last seen down 3.5% at $164.13, though the 320-day moving average appears to be keeping losses in check. Year over year, the equity is holding on to 1.8% lead. 

Options traders are pricing in a 12.8% post-earnings move, well above Qualcomm's average post-earnings swing of 7.1% over the last eight quarters. Last quarter, the chipmaker rallied 15.1% after earnings, snapping a streak of at least seven consecutive negative post-earnings reactions.

Of the 27 brokerages covering Qualcomm, 15 carry a "buy" or "strong buy" rating, while 12 maintain "hold" recommendations ahead of the event. None rate the stock a "sell."

The options pits, meanwhile, have grown increasingly bullish. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), Qualcomm's 10-day call/put volume ratio of 4.83 ranks higher than 91% of readings from the past year, indicating unusually strong demand for bullish bets ahead of the event.