Wireless chipmaker Qualcomm (NASDAQ:QCOM) will be announcing earnings results tomorrow after market close. Here's what to expect.
Last quarter Qualcomm reported revenues of $9.28 billion, down 16.9% year on year, beating analyst revenue expectations by 1.73%. It was a weak quarter for the company, with underwhelming revenue guidance for the next quarter and a decline in its operating margin.
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 decline 22.2% year on year to $8.51 billion, a deceleration on the 35.7% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.81 per share.
Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company only missed Wall St's revenue estimates once over the last two years, and has on average exceeded top line expectations by 2.71%.
Looking at Qualcomm's peers in the semiconductors segment, some of them have already reported Q3 earnings results, giving us a hint of what we can expect. SMART's revenues decreased 17.1% year on year, beating analyst estimates by 2.2% and Intel reported revenue decline of 15.5% year on year, exceeding estimates by 6.69%. SMART traded up 5.38% on the results, Intel was up 6.10%. Read our full analysis of SMART's results here and Intel's results here.
There has been positive sentiment among investors in the semiconductors segment, with the stocks up on average 2.78% over the last month. Qualcomm is up 10.4% during the same time, and is heading into the earnings with analysts' price target of $137.30, compared to share price of $132.63.
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The author has no position in any of the stocks mentioned.