Qualcomm Reports Q1 Beat, Provides Guidance
Qualcomm (NASDAQ:QCOM) unveiled its fiscal first-quarter earnings, surpassing Wall Street's expectations amid a resurgence in smartphone demand that propelled sales of handset chips. However, concerns about potential weaknesses in its crucial Chinese market led to investor caution. Shares fell nearly 2% pre-market today.
The company achieved adjusted earnings per share (EPS) of $2.75 and revenue of $9.92 billion, outperforming analyst forecasts of $2.37 EPS and $9.49 billion in revenue.
A significant factor contributing to Qualcomm's financial success was a notable 16% increase in handset chip sales compared to the same period last year, totaling $6.69 billion. This comes after a 27% year-on-year decline in handset revenue in the preceding quarter.
Sales of automotive chips for the quarter ending December 24 also saw a substantial rise, increasing by nearly a third to $598 million. However, Qualcomm's Internet-of-Things (IoT) unit experienced a 32% drop in revenue, bringing it down to $1.14 billion.
For the current quarter ending in March, Qualcomm anticipates adjusted EPS to be between $2.20 and $2.40, with projected revenue ranging from $8.9 billion to $9.7 billion. These figures surpass Wall Street's previous profit and revenue expectations of $2.25 EPS and $9.28 billion.
| Symbol | Price | %chg |
|---|---|---|
| AMD.BA | 17175 | -0.15 |
| TXN.BA | 50250 | 0.2 |
| 000660.KS | 292000 | 2.74 |
| LRCX.BA | 2100 | 0.48 |
Qualcomm Beats Q2 Expectations but Cautious Outlook Pushes Stock Down 8%
QUALCOMM (NASDAQ:QCOM) delivered better-than-expected second-quarter results, but a tepid forecast for the current quarter overshadowed the beat, sending shares down over 8% intra-day today.
The chipmaker reported earnings of $2.85 per share, topping analyst estimates of $2.80. Revenue came in at $10.84 billion, ahead of the $10.55 billion consensus, reflecting continued strength in its core business.
Despite the solid results, the company’s guidance for the third quarter disappointed investors. Qualcomm expects revenue between $9.9 billion and $10.7 billion, with the midpoint falling short of the $10.33 billion average forecast. The projected EPS range of $2.60 to $2.80 also implies limited upside, with the midpoint only slightly above the Street’s $2.66 estimate.
CEO Cristiano Amon emphasized the company’s focus on controllable factors amid macroeconomic and trade uncertainties. Still, the softer outlook weighed on sentiment, suggesting that near-term demand may face headwinds in key markets.
While the company remains operationally sound, Qualcomm’s guidance signals a more cautious approach to the second half of the year, prompting a wave of investor profit-taking.
Qualcomm Beats Q2 Expectations but Cautious Outlook Pushes Stock Down 8%
QUALCOMM (NASDAQ:QCOM) delivered better-than-expected second-quarter results, but a tepid forecast for the current quarter overshadowed the beat, sending shares down over 8% intra-day today.
The chipmaker reported earnings of $2.85 per share, topping analyst estimates of $2.80. Revenue came in at $10.84 billion, ahead of the $10.55 billion consensus, reflecting continued strength in its core business.
Despite the solid results, the company’s guidance for the third quarter disappointed investors. Qualcomm expects revenue between $9.9 billion and $10.7 billion, with the midpoint falling short of the $10.33 billion average forecast. The projected EPS range of $2.60 to $2.80 also implies limited upside, with the midpoint only slightly above the Street’s $2.66 estimate.
CEO Cristiano Amon emphasized the company’s focus on controllable factors amid macroeconomic and trade uncertainties. Still, the softer outlook weighed on sentiment, suggesting that near-term demand may face headwinds in key markets.
While the company remains operationally sound, Qualcomm’s guidance signals a more cautious approach to the second half of the year, prompting a wave of investor profit-taking.
Qualcomm Incorporated (NASDAQ:QCOM): A Strong Contender in the 5G Space
- Recent performance shows a 30-day gain of 5.78%, with a slight dip of 2.23% over the past 10 days, suggesting a potential buying opportunity.
- Analysts project a growth potential of 12.16% for QCOM, with a target price of $188.75, indicating confidence in its future performance.
- Strong fundamentals are highlighted by a Piotroski Score of 8, suggesting robust financial health and a stable foundation for growth.
Qualcomm Incorporated (NASDAQ:QCOM) is a leading player in the technology sector, known for its innovations in wireless technology and semiconductor solutions. The company is a key supplier of chips for mobile devices and has a strong presence in the 5G market. Competitors include companies like Intel and Broadcom, but Qualcomm's unique position in the 5G space sets it apart.
In recent performance, QCOM has shown resilience with a 30-day gain of 5.78%, indicating a positive trend. Despite a 2.23% decline over the past 10 days, this dip may offer a strategic buying opportunity. The stock's local minimum suggests potential for recovery, aligning with its overall upward trajectory.
Looking ahead, analysts project a 12.16% growth potential for QCOM, highlighting significant upside. The target price of $188.75 reflects confidence in the stock's ability to rebound. This growth potential is supported by Qualcomm's strong market position and ongoing innovations in technology.
Fundamentally, QCOM is robust, with a Piotroski Score of 8. This score indicates strong financial health, encompassing profitability, leverage, liquidity, and operating efficiency. Such solid fundamentals provide a stable foundation for future growth and investor confidence.
Overall, Qualcomm's blend of recent performance, growth potential, and strong fundamentals makes it an attractive investment. The recent price dip could be a strategic entry point for investors seeking exposure to a leading technology company with a promising future.
Qualcomm Incorporated (NASDAQ:QCOM): A Strong Contender in the 5G Space
- Recent performance shows a 30-day gain of 5.78%, with a slight dip of 2.23% over the past 10 days, suggesting a potential buying opportunity.
- Analysts project a growth potential of 12.16% for QCOM, with a target price of $188.75, indicating confidence in its future performance.
- Strong fundamentals are highlighted by a Piotroski Score of 8, suggesting robust financial health and a stable foundation for growth.
Qualcomm Incorporated (NASDAQ:QCOM) is a leading player in the technology sector, known for its innovations in wireless technology and semiconductor solutions. The company is a key supplier of chips for mobile devices and has a strong presence in the 5G market. Competitors include companies like Intel and Broadcom, but Qualcomm's unique position in the 5G space sets it apart.
In recent performance, QCOM has shown resilience with a 30-day gain of 5.78%, indicating a positive trend. Despite a 2.23% decline over the past 10 days, this dip may offer a strategic buying opportunity. The stock's local minimum suggests potential for recovery, aligning with its overall upward trajectory.
Looking ahead, analysts project a 12.16% growth potential for QCOM, highlighting significant upside. The target price of $188.75 reflects confidence in the stock's ability to rebound. This growth potential is supported by Qualcomm's strong market position and ongoing innovations in technology.
Fundamentally, QCOM is robust, with a Piotroski Score of 8. This score indicates strong financial health, encompassing profitability, leverage, liquidity, and operating efficiency. Such solid fundamentals provide a stable foundation for future growth and investor confidence.
Overall, Qualcomm's blend of recent performance, growth potential, and strong fundamentals makes it an attractive investment. The recent price dip could be a strategic entry point for investors seeking exposure to a leading technology company with a promising future.
Qualcomm Initiated at Hold with $180 Price Target Amid Slowing Growth Outlook
Melius Research initiated coverage on Qualcomm (NASDAQ:QCOM) with a Hold rating and a price target of $180, reflecting a valuation of approximately 14 times the firm's fiscal 2027 earnings per share estimate of $12.52.
The analysts acknowledged Qualcomm's long-standing reputation as a pioneer in mobile technology and its track record of innovation in high-performance chipsets. However, concerns over slowing growth weighed on the outlook. Revenue growth is projected to decelerate from high single digits to just 3% over the next two years, significantly lagging the mid-teens average of comparable companies in an AI-driven market cycle.
This anticipated slowdown led to a valuation at the lower end of the peer group, tempering expectations despite Qualcomm’s strong intellectual property and attractive positioning within the semiconductor industry.
Qualcomm Initiated at Hold with $180 Price Target Amid Slowing Growth Outlook
Melius Research initiated coverage on Qualcomm (NASDAQ:QCOM) with a Hold rating and a price target of $180, reflecting a valuation of approximately 14 times the firm's fiscal 2027 earnings per share estimate of $12.52.
The analysts acknowledged Qualcomm's long-standing reputation as a pioneer in mobile technology and its track record of innovation in high-performance chipsets. However, concerns over slowing growth weighed on the outlook. Revenue growth is projected to decelerate from high single digits to just 3% over the next two years, significantly lagging the mid-teens average of comparable companies in an AI-driven market cycle.
This anticipated slowdown led to a valuation at the lower end of the peer group, tempering expectations despite Qualcomm’s strong intellectual property and attractive positioning within the semiconductor industry.
Qualcomm (NASDAQ:QCOM) Coverage Initiated by Loop Capital Markets
- Loop Capital Markets has initiated coverage on Qualcomm (NASDAQ:QCOM) with a "Hold" rating and a stock price of $168.29.
- Qualcomm's strong performance in its fourth-quarter earnings report, particularly in handset revenue and AI chip performance, positions the company for future growth.
- The company announced a $15 billion stock repurchase program, despite concerns over future growth due to potential competition from Apple's in-house 5G modems.
On November 11, 2024, Loop Capital Markets initiated coverage on Qualcomm (NASDAQ:QCOM) with a "Hold" rating. At that time, the stock price was $168.29. Qualcomm is a leading player in the semiconductor industry, known for its innovations in wireless technology and AI chips. It faces competition from companies like Intel and MediaTek.
Qualcomm's shares have been stagnant recently, but the growing AI smartphone market is expected to benefit the company. In its fourth-quarter earnings report, Qualcomm exceeded expectations, showing strong growth in handset revenue and AI chip performance. This positions the company well for future growth, despite the current "Hold" rating.
The company's valuation is attractive, with a low price-to-earnings ratio and strong projected revenue growth. This presents significant upside potential for investors. Despite the positive earnings report, analysts remain divided on the future prospects of the handset market, which could impact Qualcomm's performance moving forward, as highlighted by Benzinga.
Qualcomm has announced a substantial $15 billion stock repurchase program, reflecting confidence in its financial health. However, concerns about future growth persist due to Apple's potential shift to developing its own in-house 5G modems. This transition could reduce Qualcomm's revenue by 3% from fiscal year 2026 to 2028.
Despite these challenges, Qualcomm's Snapdragon 8 Elite and growth in the AI PC market present potential opportunities. The current stock price of $168.29 reflects a decrease of 1.533% or $2.62. Over the past year, QCOM has reached a high of $230.63 and a low of $122.63, with a market capitalization of approximately $186.97 billion.
