/Qualcomm%2C%20Inc_%20logo%20on%20phone-by%20viewimage%20via%20Shutterstock.jpg)
With a market cap of $190.7 billion, QUALCOMM Incorporated (QCOM) is a leading semiconductor company in the wireless technology industry. It develops advanced mobile, automotive, and AI-focused chip designs and licenses key patents for 3G, 4G, and 5G technologies. The San Diego, California-based company is expected to announce its fiscal Q4 earnings results after the market closes on Wednesday, Nov. 6.
Ahead of the event, analysts expect the chipmaker to report a profit of $2.01 per share, up 26.4% from $1.59 per share in the year-ago quarter. The company has surpassed Wall Street's bottom-line estimates in the past four quarters. QCOM exceeded the consensus EPS estimates by a 12.2% margin in the most recent quarter.
For fiscal 2024, analysts expect QCOM to report an EPS of $8.02, up nearly 21% from $6.63 in fiscal 2023.
Over the past 52 weeks, QCOM has surged 54%, outperforming both the S&P 500 Index's ($SPX) 35.9% rise and the Technology Select Sector SPDR Fund's (XLK) 37.7% increase over the same period.
Despite reporting better-than-expected Q3 adjusted EPS of $2.33 and revenue of $9.4 billion on Jul. 31, Qualcomm shares tumbled 9.4% the following day due to concerns over its guidance for the December quarter, which predicted mid-single-digit revenue growth rather than the anticipated double-digit growth. Analysts expressed worry about the forecast of flat smartphone sales, given that the handset segment represented 73% of Qualcomm's revenue, raising fears of sluggish demand in a key market. Additionally, the company flagged tighter U.S. export restrictions to Huawei and an 8% decline in IoT chip sales, indicating broader challenges across its product segments, further fueled investor concerns.
Analysts' consensus view on QCOM stock is cautiously optimistic, with a "Moderate Buy" rating overall. Among 30 analysts covering the stock, 16 recommend a "Strong Buy," one suggests a "Moderate Buy," 12 give a "Hold" rating, and one assigns a "Strong Sell" rating. The average analyst price target for QCOM is $213.83, suggesting a potential upside of 25.1% from the current levels.
On the date of publication, Sohini Mondal 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.
