QUALCOMM, Inc. (NASDAQ:QCOM) will release its earnings report for the three months through June 30 this afternoon after the market closes. The company is expected to show earnings per share of $1.03 for the period by analyst consensus, on revenues totaling $6.1 billion.
On today’s market, shares in QUALCOMM, Inc. (NASDAQ:QCOM) trended downward, standing at $61.59, 1.13 percent down on the days trading at time of writing. BMO analyst Tim Long reckons Qualcomm will outperform the sector in the medium term, but reckons that this afternoon’s earnings will be in line with analyst consensus.
According to the BMO report, QUALCOMM, Inc. (NASDAQ:QCOM) has significant upside. The analysts puts a price target of $77 on the company’s stock. That’s a 25 percent premium on the company’s current value. Mr. Long sees Qualcomm as the best company in the wireless semiconductor market, and assumes that the company’s earnings are due to grow by a significant amount in the year to come as global smart phone demand continues to increase.
Mr. Long reckons that QUALCOMM, Inc. (NASDAQ:QCOM) will have earnings of between $4.55 and $5.10 for the full year 2013. That estimate is slightly above, but not significantly different from, the full year estimates reached by consensus. Those numbers come in at between $4.51 and $4.91.
QUALCOMM, Inc. (NASDAQ:QCOM) hasn’t performed well so far in 2013. The firm has vastly underperformed the market this year, losing a small fraction of its value since the year began as the S&P 500 gained more than 18 percent and the Nasdaq put on close to the same. Qualcomm also underperformed in 2012, gaining 13 percent while the Nasdaq gained close to 16 percent.
QUALCOMM, Inc. (NASDAQ:QCOM) is not running a particularly high valuation, with its P/E at under 18 times 2012 earnings. If Mr. Long is right, and the stock is going to outperform in the year ahead there is certainly a lot of room for growth, but that growth has been promised before, and it’s never arrived.