Qualcomm (QCOM) Q4 Earnings Report Preview: What To Look For

Petr Huřťák /
2022/11/01 3:58 am EDT

Wireless chipmaker Qualcomm (NASDAQ:QCOM) will be reporting earnings tomorrow after the bell. Here's what you need to know.

Last quarter Qualcomm reported revenues of $10.9 billion, up 35.6% year on year, in line with analyst expectations. It was a slower quarter for the company, with an underwhelming revenue guidance for the next quarter and an increase in inventory levels.

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This quarter analysts are expecting Qualcomm's revenue to grow 21.7% year on year to $11.3 billion, improving on the 11.8% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $3.13 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 four 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 8.16%.

Looking at Qualcomm's peers in the semiconductors segment, some of them have already reported Q4 earnings results, giving us a hint what we can expect. Allegro MicroSystems delivered top-line growth of 22.7% year on year, beating analyst estimates by 5.61% and Intel reported revenue decline of 20% year on year, exceeding estimates by 0.24%. Allegro MicroSystems traded up 5.69% on the results, Intel was up 1.41%. Read our full analysis of Allegro MicroSystems's results here and Intel's results here.

Investors in the semiconductors segment have had steady hands going into the earnings, with the stocks up on average 0.97% over the last month. Qualcomm is up 0.58% during the same time, and is heading into the earnings with with analyst price target of $175.2, compared to share price of $117.9.

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