Wireless chipmaker Qualcomm (NASDAQ: QCOM) will be announcing earnings results this Wednesday after market hours. Here’s what to look for.
Qualcomm met analysts’ revenue expectations last quarter, reporting revenues of $12.25 billion, up 5% year on year. It was a mixed quarter for the company, with a significant improvement in its inventory levels but revenue guidance for next quarter missing analysts’ expectations significantly.
Is Qualcomm a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Qualcomm’s revenue to decline 2.4% year on year, a reversal from the 15.4% increase it recorded in the same quarter last year.
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 a history of exceeding Wall Street’s expectations.
Looking at Qualcomm’s peers in the semiconductors segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Intel delivered year-on-year revenue growth of 7.2%, beating analysts’ expectations by 9.6%, and Penguin Solutions reported a revenue decline of 6.2%, topping estimates by 0.8%. Intel traded up 23.6% following the results while Penguin Solutions was also up 13.4%.
Read our full analysis of Intel’s results here and Penguin Solutions’s results here.
There has been positive sentiment among investors in the semiconductors segment, with share prices up 46.9% on average over the last month. Qualcomm is up 18.7% during the same time and is heading into earnings with an average analyst price target of $150.10 (compared to the current share price of $150.83).
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