Qualcomm (QCOM) Q3 Earnings Report Preview: What To Look For

Radek Strnad /
2022/07/26 4:13 am EDT
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Wireless chipmaker Qualcomm (NASDAQ:QCOM) will be reporting results tomorrow after the bell. Here's what you need to know.

Last quarter Qualcomm reported revenues of $11.1 billion, up 40.6% year on year, beating analyst revenue expectations by 5.35%. It was a very strong quarter for the company, with a beat on the bottom line and a very optimistic guidance for the next quarter.

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 34.6% year on year to $10.8 billion, slowing down from the 64.7% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.87 per share.

Qualcomm Total Revenue

The analysts covering the company have had mixed opinions about the business heading into the earnings, with revenue estimates seeing two upward and 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 8.29%.

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. NXP Semiconductors delivered top-line growth of 27.5% year on year, beating analyst estimates by 1.43% and Seagate Technology reported revenue decline of 12.7% year on year, missing analyst estimates by 5.72%. Both companies (Seagate Technology and NXP Semiconductors) traded flat on the results. Read our full analysis of NXP Semiconductors's results here and Seagate Technology's results here.

There has been positive sentiment among investors in the semiconductors segment, with the stocks up on average 4.56% over the last month. Qualcomm is up 20.3% during the same time, and is heading into the earnings with analyst price target of $189.8, compared to share price of $152.06.

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.