Qualcomm (QCOM) Reports Q1: Everything You Need To Know Ahead Of Earnings

Radek Strnad /
2022/04/26 7:09 am EDT

Wireless chipmaker Qualcomm (NASDAQ:QCOM) will be reporting results tomorrow afternoon. Here's what you need to know.

Last quarter Qualcomm reported revenues of $10.7 billion, up 29.9% year on year, beating analyst revenue expectations by 2.59%. It was a strong quarter for the company, with a very optimistic guidance for the next quarter and a beat on the bottom line.

Is Qualcomm buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting Qualcomm's revenue to grow 33.5% year on year to $10.6 billion, slowing down from the 52.1% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.92 per share.

Qualcomm Total Revenue

The analysts covering the company have been growing increasingly bearish about the business heading into the earnings, with revenue estimates seeing two downward revisions over the last thirty days. The company only missed Wall St's revenue estimates once over the last two years, and has on average exceeded top-line expectations by 8.05%.

Looking at Qualcomm's peers in the semiconductors segment, some of them have already reported Q1 earnings results, giving us a hint of what we can expect. Lam Research delivered top-line growth of 5.52% year on year, missing analyst estimates by 4.33%. Its stock traded down 3.68% on the results. Read our full analysis of Lam Research's results here.

Tech stocks have been facing declining investor sentiment in 2022 and while some of the semiconductors stocks have fared somewhat better, they have not been spared, with share price declining 12.5% over the last month. Qualcomm is down 13.7% during the same time, and is heading into the earnings with analyst price target of $205.9, compared to share price of $136.68.

One way to find opportunities in the market is to watch for generational shifts in the economy. Almost every company is slowly finding itself becoming a technology company and facing cybersecurity risks and as a result, the demand for cloud-native cybersecurity is skyrocketing. This company is leading a massive technological shift in the industry and with revenue growth of 70% year on year and best-in-class SaaS metrics it should definitely be on your radar.

The author has no position in any of the stocks mentioned.