Qualcomm (QCOM) Q1 Earnings Report Preview: What To Look For

Kayode Omotosho /
2023/02/01 4:22 am EST
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Wireless chipmaker Qualcomm (NASDAQ:QCOM) will be reporting earnings tomorrow afternoon. Here's what to expect.

Last quarter Qualcomm reported revenues of $11.3 billion, up 22% year on year, in line with analyst expectations. It was a weaker quarter for the company, with underwhelming revenue guidance for the next quarter and an increase in inventory levels.

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 10.5% year on year to $9.57 billion, a significant deceleration on the 29.9% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.35 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 three 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 3.1%.

Looking at Qualcomm's peers in the processors and graphics chips segment, some of them have already reported Q1 earnings results, giving us a hint of what we can expect. Intel's revenues decreased 31.5% year on year, missing analyst estimates by 3.1% and AMD reported revenues up 16% year on year, exceeding estimates by 1.5%. Intel traded down 7.11% on the results, and AMD was up 3.71%. Read our full analysis of Intel's results here and AMD's results here.

There has been positive sentiment among investors in the processors and graphics chips segment, with the stocks up on average 19.1% over the last month. Qualcomm is up 24.1% during the same time, and is heading into the earnings with analyst price target of $152.12, compared to share price of $133.21.

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