Qualcomm Inc. (NASDAQ: QCOM) has announced that it will release its Q4 2021 earnings results on November 3, 2021, after market close.
What to look for
Qualcomm has produced an earnings beast in recent quarters, especially in the past two quarters. The company has an average earnings surprise for the last two-quarters of 14.37%. Most of its Q3 growth was driven by chip sales, with the QCT semiconductor sales increasing 70% annually and the RF front-end segment growing 114%. The RF front-end semiconductors are vital to 5G deployment, and it is an area the company has prioritized for growth. The segment is expected to continue growing and reflect inQ4 2021 results.
Earnings: Stockearning’s Estimated EPS for Q4 2021 is $2.24 per share. Historical EPS Performance for the past 12 quarters shows that the company has topped estimates on eleven occasions (91%) and met estimates once (8%) and has never missed estimates over that period. In Q3 2021, the company reported EPS of $1.92, topping analysts' estimates of $1.68.
Revenue: In Q3 2021, the company reported revenue of $8 billion, topping estimates of $7.58 billion. Q3 revenue was up 63% YoY, with earnings doubling annually for the third quarter due to increased chip demand. For the current quarter under review, the company is guiding for midpoint revenue of $8.8 billion.
Stock movement: Since the last earnings release, QCOM stock has lost $7.2%. The share price has been DOWN 24 times in the previous 46 quarters following the earnings release. So, the historical price reaction suggests a 51% chance of the share price going DOWN after the company releases earnings. According to the Stockearning algorithm, the predicted stock move on the first day is 5%, while the predicted move on the seventh day is 5%.
What analysts are saying
Mizuho analysts Vijay Rakesh lowered his target price on the stock from $180 to $165 but maintained a “Buy” rating in the stock. Rakesh said that the company could see headwinds in China, but a high margin QTL division with ramps of iPhones potentially boosting margin growth will offset this.
Wells Fargo analyst Gary Mobley also lowered Qualcomm's price target from $155 to $138, ahead of the company's Q4 2021 earnings results. However, Mobley maintained a “Hold” rating in the shares.
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