Yahoo Finance Analyst Estimates: Here's What Brokers Think Of QUALCOMM Incorporated (NASDAQ:QCOM) After Its Third-Quarter Report
QUALCOMM Incorporated (NASDAQ:QCOM) shareholders are probably feeling a little disappointed, since its shares fell 6.5% to US$164 in the week after its latest quarterly results. QUALCOMM reported US$9.4b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of US$1.88 beat expectations, being 4.8% higher than what the analysts expected. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
Check out our latest analysis for QUALCOMM
Following the latest results, QUALCOMM's 31 analysts are now forecasting revenues of US$42.0b in 2025. This would be a notable 12% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to step up 17% to US$9.27. In the lead-up to this report, the analysts had been modelling revenues of US$42.2b and earnings per share (EPS) of US$9.27 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.
The analysts reconfirmed their price target of US$217, showing that the business is executing well and in line with expectations. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on QUALCOMM, with the most bullish analyst valuing it at US$270 and the most bearish at US$140 per share. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. The period to the end of 2025 brings more of the same, according to the analysts, with revenue forecast to display 9.7% growth on an annualised basis. That is in line with its 12% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 18% per year. So although QUALCOMM is expected to maintain its revenue growth rate, it's forecast to grow slower than the wider industry.
The Bottom Line
The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that QUALCOMM's revenue is expected to perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
With that in mind, we wouldn't be too quick to come to a conclusion on QUALCOMM. Long-term earnings power is much more important than next year's profits. We have forecasts for QUALCOMM going out to 2026, and you can see them free on our platform here.
You still need to take note of risks, for example - QUALCOMM has 1 warning sign we think you should be aware of.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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