Qualcomm (QCOM, $87.14) beats earnings estimates, but softening smartphone demand looms over revenue guidance
For the three months ending March, Qualcomm earnings surpassed analysts’ estimates. Revenue however fell behind expectations.
The semiconductor giant’s non-GAAP earnings for the quarter came in at 77 cents per share, higher than Wall Street estimates of 71 cents per share.
Total revenue came in at $4.9 billion for the quarter, which is -5.8% lower from the prior year quarter.
Looking ahead, Qualcomm forecasts earnings between 70 cents and 80 cents per share for the current quarter, thereby trailing behind Wall Street's expectation of $1.29 per share.
The company forecasts revenue of $4.7 billion to $5.5 billion for the current quarter, compared to the $5.3 billion mid-point prediction by analysts (based on Refinitiv). Apparently, softening smartphone demand from economic weakness in China has weighed on its revenue guidance.
Qualcomm’s years-long patent dispute with Apple seemed to arrive at a resolution last month, leading the semiconductor company to expect a one-time benefit of $4.5 billion and $4.7 billion. The latest agreement between the two companies includes a six-year global patent license agreement and a multi-year chipset supply agreement.
CEO Steve Mollenkopf indicated that the expected proliferation of 5G network should spell opportunity for Qualcomm, as faster internet speed could spur upgrades in smartphone handsets.
QCOM in upward trend: price may jump up because it broke its lower Bollinger Band on December 18, 2024
QCOM may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options. In of 37 cases where QCOM's price broke its lower Bollinger Band, its price rose further in the following month. The odds of a continued upward trend are .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. of 57 cases where QCOM's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Momentum Indicator moved above the 0 level on December 24, 2024. You may want to consider a long position or call options on QCOM as a result. In of 86 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for QCOM just turned positive on December 24, 2024. Looking at past instances where QCOM's MACD turned positive, the stock continued to rise in of 47 cases over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where QCOM advanced for three days, in of 309 cases, the price rose further within the following month. The odds of a continued upward trend are .
Bearish Trend Analysis
Following a 3-day decline, the stock is projected to fall further. Considering past instances where QCOM declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Aroon Indicator for QCOM entered a downward trend on December 24, 2024. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (6.739) is normal, around the industry mean (11.467). P/E Ratio (17.826) is within average values for comparable stocks, (57.657). Projected Growth (PEG Ratio) (1.574) is also within normal values, averaging (3.177). Dividend Yield (0.021) settles around the average of (0.021) among similar stocks. P/S Ratio (4.621) is also within normal values, averaging (54.092).
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 67, placing this stock better than average.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. QCOM’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
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a provider of wireless communication systems
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