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San Diego, California-based QUALCOMM Incorporated (QCOM) is a fabless semiconductor company. With a market cap of $202.1 billion, it operates through Qualcomm CDMA Technologies (QCT), Qualcomm Technology Licensing (QTL), and Qualcomm Strategic Initiatives (QSI) segments. The semiconductor giant is expected to release its Q3 earnings after the market closes on Wednesday, July 31.
Ahead of the event, analysts expect QUALCOMM to report a profit of $1.72 per share, up 22.9% from $1.40 per share reported in the year-ago quarter. The company has consistently surpassed Wall Street’s EPS projections in each of the past four quarters. Its EPS for the last reported quarter grew 14.2% to $1.93 and exceeded the consensus estimates by 6%.
Looking ahead to fiscal 2024, analysts expect QUALCOMM to report an EPS of $7.84, up 18.3% from $6.63 in fiscal 2023. Its fiscal 2025 EPS is projected to grow another 13% to $8.86.
QCOM stock is up 21.3% on a YTD basis, substantially outperforming the S&P 500 Index’s ($SPX) 13.2% gains and the S&P 500 Technology Sector SPDR’s (XLK) 11% returns over the same time frame.
After QUALCOMM’s fiscal Q2 earnings release on May 1, QCOM stock surged 9.7% in the subsequent trading session. Despite modest 1.3% annual revenue growth, net income skyrocketed by 36.5%. Qualcomm’s stronghold in wireless tech and strategic investments in 5G, automotive, and IoT markets set the stage for robust future gains. The chip giant is also capitalizing on the generative AI boom. With thriving automotive ventures amid the rise of electric and autonomous vehicles, Qualcomm is riding high.
Consistent dividend payouts over 20 years and $1.6 billion returned to shareholders in Q2, including $895 million in dividends and $731 million in stock repurchases, further underline its financial strength. This potent mix of market leadership, strategic diversification, and shareholder returns has propelled QCOM beyond the broader market.
The consensus opinion on QUALCOMM Stock is moderately bullish, with an overall “Moderate Buy” rating. Out of the 29 analysts covering the stock, 17 recommend a “Strong Buy,” one advocates a “Moderate Buy,” 10 suggest a “Hold,” and the remaining one analyst advises a “Strong Sell” rating. Over the past three months, two new recommendations – one “Strong Buy” and one “Moderate Buy” – have been added to the consensus.
The average target price for QCOM stock is $206.43, indicating a potential upside of 17.7% from current price levels.
On the date of publication, Sristi Jayaswal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
