Wireless chipmaker Qualcomm (NASDAQ: QCOM) will be reporting earnings this Wednesday after the bell. Here’s what you need to know.
Qualcomm beat analysts’ revenue expectations last quarter, reporting revenues of $9.95 billion, down 4% year on year. It was a mixed quarter for the company, with a narrow beat of analysts’ operating income estimates but an increase in its inventory levels.
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 9.9% year on year, a reversal from the 10% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Qualcomm has a history of exceeding Wall Street’s expectations.
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. Lattice Semiconductor delivered year-on-year revenue growth of 118%, beating analysts’ expectations by 13.7%, and Penguin Solutions reported revenues up 67.7%, topping estimates by 8.8%. Penguin Solutions traded up 13.1% following the results.
Read our full analysis of Lattice Semiconductor’s results here and Penguin Solutions’s results here.
Over the past year, investors have repeatedly shifted their focus from one macro narrative to another (AI disruption and AI capex spending to geopolitics, interest rates, and the broader health of the economy). Unfortunately, processors and graphics chips stocks have struggled in this environment as share prices are down 20.2% on average over the last month. Qualcomm is down 10% during the same time and is heading into earnings with an average analyst price target of $195.97 (compared to the current share price of $162.64).
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