Can Anything Save QUALCOMM, Inc. (NASDAQ:QCOM)’s Earnings this Quarter?

Qualcomm QCOM
Photo Credit: K?rlis Dambr?ns, Flickr

QUALCOMM Inc. (QCOM) Information Technology – Communications Equipment | Reports April 20, After Market Closes

Key Takeaways

  • The Estimize consensus is calling for earnings per share of $1.00 on $5.59 billion in revenue, 2 cents higher than Wall Street on the bottom line and $30 million on the top
  • Qualcomm is expecting relatively flat year over growth, which would mark the first non-negative quarter since fiscal 2015
  • Saturation in the mobile market has pushed Qualcomm into new markets including data centers and 5G technology
  • What are you expecting for QCOM? Get your estimate in here!

The past few years has been largely mixed for the semiconductor industry, with names like NVidia continually crushing expectations and AMD falling short quarter after quarter. Qualcomm has fallen in the former half of the conversation, beating in each of the last 6 quarters, but still posting YoY declines in EPS and revenues for the last 4 quarters. Over the same period, the has stock plunged by 12.6% on waning demand for wireless telecom products and services. Expectations have been positive heading into its Q3 report this Wednesday.

The Estimize consensus is calling for earnings per share of $1.00 on $5.59 billion in revenue, 2 cents higher than Wall Street on the bottom line and $30 million on the top. This represents flat earnings growth and a 5% decline in sales, which would be leaps and bounds ahead of previous quarters. If Qualcomm can buck the downward trend it has been witnessing, the stock may follow suit.Qualcomm has been in a rut for some time now. Growth in its core business has slowed causing investors to turn away from the once rapidly growing company. A majority of its revenue is generated from its mobile business but the highest margins comes from the 3G/4G patent side. Qualcomm Snapdragon powered processors are a leader in the mobile market with over 115 products deployed with the chips. Later this year we will see the next iteration of the Snapdragon 820 when Qualcomm introduces the 821.

Regardless, rising competition and an increasingly saturated smartphone market has pushed down revenue in this sector. Qualcomm effectively competes with Intel in many of its core sectors which is proving to be troublesome. Recently Intel was rumored to have claimed iPhone orders from Qualcomm.

Fortunately, Qualcomm doesn’t rely solely on its mobile business as it transitions to high growth markets. Some of them include advancing into data centers and developing 5G technology. 5G technology is expected to be the next big breakthrough in the mobile industry. There a huge opportunity for the company that can develop and deploy 5G technology to the market fastest.
Do you think QCOM can beat estimates? There is still time to get your estimate in here!

Photo Credit: K?rlis Dambr?ns