Yahoo Finance Qualcomm (QCOM) Reports Q2: Everything You Need To Know Ahead Of Earnings
Wireless chipmaker Qualcomm (NASDAQ:QCOM) will be announcing earnings results tomorrow afternoon. Here's what you need to know.
Qualcomm met analysts' revenue expectations last quarter, reporting revenues of $9.39 billion, up 1.2% year on year. It was a decent quarter for the company, with a solid beat of analysts' EPS estimates but an increase in its inventory levels.
Is Qualcomm a buy or sell going into earnings? Read our full analysis here, it's free.
This quarter, analysts are expecting Qualcomm's revenue to grow 9.1% year on year to $9.22 billion, a reversal from the 22.7% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.26 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Qualcomm has missed Wall Street's revenue estimates twice over the last two years.
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. SMART's revenues decreased 12.7% year on year, meeting analysts' expectations, and Lattice Semiconductor reported a revenue decline of 34.7%, falling short of estimates by 4.7%. SMART traded up 26.3% following the results.
Read our full analysis of SMART's results here and Lattice Semiconductor's results here.
Stocks, especially growth stocks where cash flows further in the future are more important to the story, had a good end of 2023. 2024 has seen more volatile stock performance thanks to mixed inflation data, and while some of the semiconductors stocks have fared somewhat better, they have not been spared, with share prices down 4.1% on average over the last month. Qualcomm is down 11.1% during the same time and is heading into earnings with an average analyst price target of $214.4 (compared to the current share price of $177.86).
Unless you’ve been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) semiconductor stock benefitting from the rise of AI. Click here to access our free report on our favorite semiconductor growth story.
