Wireless chipmaker Qualcomm (NASDAQ: QCOM) will be reporting earnings this Wednesday after the bell. Here’s what to expect.
Qualcomm met analysts’ revenue expectations last quarter, reporting revenues of $10.6 billion, down 2.2% year on year. It was a slower quarter for the company, with revenue guidance for next quarter missing analysts’ expectations significantly and an increase in its inventory levels.
Is Qualcomm a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Qualcomm’s revenue to decline 6.8% year on year, a reversal from the 10.4% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Qualcomm has a history of exceeding Wall Street’s expectations.
Looking at Qualcomm’s peers in the semiconductors segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Intel delivered year-on-year revenue growth of 25.4%, beating analysts’ expectations by 11.7%, and Penguin Solutions reported revenues up 47.6%, topping estimates by 17.5%. Intel traded down 12.2% following the results while Penguin Solutions was up 25.1%.
Read our full analysis of Intel’s results here and Penguin Solutions’s results here.
Over the past year, investors have repeatedly shifted their focus from one macro narrative to another (AI disruption and AI capex spending to geopolitics, interest rates, and the broader health of the economy). Unfortunately, semiconductors stocks have struggled in this environment as share prices are down 17.1% on average over the last month. Qualcomm is down 9.9% during the same time and is heading into earnings with an average analyst price target of $221.23 (compared to the current share price of $170.08).
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