Earnings Preview: Facebook Inc, Qualcomm, Inc.

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Qualcomm’s Q1 revenue is expected to jump 4.80% YoY to $6.94 billion

Facebook and Qualcomm will be releasing their quarterly results today. The Menlo Park-based social networking giant will announce its fiscal Q4, 2014 results at 5:00 p.m. EST on Wednesday. Qualcomm is scheduled to release its Q1, 2015 results at 4:00 p.m. EST, followed by a conference call at 4:45 pm. Let’s take a look at what analysts expect from each of the tech heavyweights.

Facebook expects slowing revenue growth

Facebook management expects its revenue growth to slow and expenses to rise in the fourth quarter. The company expects total GAAP expenses to increase between 45% and 50% for full-year 2014. Facebook expects Q4 revenue to jump between 40% and 47% from the previous year. Though it reflects a slowdown from previous quarters, it’s still a stellar performance for a business the size of Facebook.

Earnings Preview: Facebook Inc, Qualcomm, Inc.

Analysts on average have called for $3.77 billion in revenue, up 46% from the corresponding quarter last year. Wall Street expects Facebook’s earnings to surge 78% YoY to 48 cents a share. For full-year 2014, analysts project $12.39 billion in revenue, an increase of 57.30% from the previous year. Full-year earnings are expected to come in at $1.69 per share. Investors will also be looking for user growth.

Qualcomm set for modest growth

Analysts on average expect Qualcomm to report $1.25 per share in Q1 earnings, down from $1.26 a share in the same quarter a year ago. The consensus EPS estimate has declined from $1.43 in the last 90 days. First-quarter revenue is expected to jump a modest 4.80% YoY to $6.94 billion. Qualcomm management sees significant opportunities in China, thanks to the strong 3G/4G LTE growth projections. The company expects worldwide shipments of 3G/4G devices to reach 1.5 billion in 2015.

For the December quarter, Qualcomm management has guided revenue between $6.6 billion and $7.2 billion. The company expects EPS to come in the range of $1.18 to $1.30. Last week, Cowen & Co reiterated an Outperform rating on the stock with $79 price objective.

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