Qualcomm Earnings: What To Look For From QCOM

Wireless chipmaker Qualcomm (NASDAQ:QCOM) will be reporting results tomorrow after the bell. Here’s what you need to know.

Qualcomm beat analysts’ revenue expectations by 1.9% last quarter, reporting revenues of $9.39 billion, up 11.1% year on year. It was a strong quarter for the company, with optimistic earnings guidance for the next quarter and a decent beat of analysts’ EPS estimates.

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 15.1% year on year to $9.93 billion, a reversal from the 24.3% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.57 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 missed Wall Street’s revenue estimates twice over the last two years.

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. AMD delivered year-on-year revenue growth of 17.6%, beating analysts’ expectations by 1.6%, and Qorvo reported a revenue decline of 5.2%, topping estimates by 1.8%. AMD’s stock price was unchanged after the results, and Qorvo’s price followed a similar reaction.

Read our full analysis of AMD’s results here and Qorvo’s results here.

Valuation multiples for many growth stocks have not yet reverted to their early 2021 highs, but the market was optimistic at the end of 2023 thanks to cooling inflation. 2024 has been a different story as mixed signals have led to market volatility, and while some of the processors and graphics chips stocks have fared somewhat better, they have not been spared, with share prices down 6.3% on average over the last month. Qualcomm is down 1.2% during the same time and is heading into earnings with an average analyst price target of $210.05 (compared to the current share price of $164.94).

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