Qualcomm Stock Gears Up for Earnings After Tech Selloff

Qualcomm (NASDAQ:QCOM) will report fourth-quarter earnings tomorrow, Wednesday, Nov. 4, after the market closes. Zacks Consensus Estimates call for earnings of $2.16 per share on revenue of $10.15 billion, representing year-over-year decreases of 28% and 9.9%, respectively.

QCOM was last seen up 0.9% at $163.50, recovering slightly after the recent tech selloff. The shares are down 4.5% year to date, though the $160 level could provide support.

Qualcomm has a mostly negative post-earnings history. Looking back at the last 12 quarterly reports, the stock finished its next session higher just 3 times, averaging a 1.6% loss. Following its April report, QCOM enjoyed 15.1% pop, however. This time around, the options pits are pricing in a 8.8% post-earnings move this time around, regardless of direction.

Options traders have been more bearish than usual ahead of the report. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), QCOM's 10-day put/call volume ratio ranks in the 81st percentile of its annual range.

Lastly, QCOM stock has tended to outperform options traders' volatility expectations as well. This is per its Schaeffer's Volatility Scorecard (SVS) of 82 out of 100, indicating now is a good time to be a buyer.