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Can Top-Line Growth Benefit Qualcomm (QCOM) Q4 Earnings?
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Qualcomm Incorporated (QCOM - Free Report) is set to report fourth-quarter fiscal 2022 results on Nov 2, after the closing bell. In the last reported quarter, the company delivered an earnings surprise of 3.5%. It pulled off a trailing four-quarter earnings surprise of 8.5%, on average.
This San Diego, CA-based company is expected to have recorded higher revenues year over year, driven by the ramp-up in 5G-enabled chips and strength in its Snapdragon portfolio. The company is increasingly benefiting from advanced radio frequency front-end solutions for high-performance 5G devices and automotive chips.
Factors at Play
During the quarter, Qualcomm extended its long-standing seven-year association with Meta Platforms, Inc. to manufacture new customized processors for the latter’s Quest virtual reality (VR) headsets. Meta’s Quest and Quest 2 VR headsets work on Qualcomm’s Snapdragon chips. The new chips for VR headsets will operate on Qualcomm’s Snapdragon extended reality processors.
It also inked an agreement with chipset manufacturer GlobalFoundries to manufacture advanced 5G multi-gigabit speed RF front-end products to cater to higher demands. The firms extended their RF collaboration to provide sturdy low-power semiconductor solutions with high cellular speeds, enhanced coverage and maximum power efficiency. Such innovative products are likely to have translated into higher revenues in the quarter.
In the to-be-reported quarter, Qualcomm launched its premium wearable platforms, Snapdragon W5+ Gen 1 and Snapdragon W5 Gen 1, for extended battery life and premium user experience. Its flagship Snapdragon 8+ Gen 1 mobile platform is powering Samsung Electronics’ latest cutting-edge foldable smartphones, the Samsung Galaxy Z Fold4 and Galaxy Z Flip4. The new Galaxy Z series devices will also feature the latest Qualcomm FastConnect 6900 Mobile Connectivity System for fast, sustained Wi-Fi and Bluetooth connection. These are likely to have generated incremental revenues in the quarter.
In the fiscal fourth quarter, Qualcomm’s automotive design-win pipeline soared to $30 billion. Driven by the increasing adoption of Snapdragon Digital Chassis solutions across the auto industry, the design win portfolio has improved by more than $10 billion sequentially. Qualcomm is witnessing healthy traction in EDGE networking that helps to transform connectivity in cars, business enterprises, homes, smart factories, next-generation PCs, wearables and tablets. These are likely to be reflected in the upcoming results.
For the September quarter, the Zacks Consensus Estimate for revenues is pegged at $11,382 million, indicating growth of 21.9% from the year-ago quarter’s reported figure. The consensus estimate for adjusted earnings per share stands at $3.15, which suggests an increase of 23.5%.
Earnings Whispers
Our proven model does not predict an earnings beat for Qualcomm for the fiscal fourth quarter. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is not the case here.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is -2.42%, with the former pegged at $3.07 and the latter at $3.15. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Here are some companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this season:
The Earnings ESP for United States Cellular Corporation (USM - Free Report) is +47.46% and it sports a Zacks Rank of 1. The company is set to report quarterly numbers on Nov 3.
The Earnings ESP for CDW Corporation (CDW - Free Report) is +0.31% and it carries a Zacks Rank of 3. The company is scheduled to report quarterly numbers on Nov 2.
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Can Top-Line Growth Benefit Qualcomm (QCOM) Q4 Earnings?
Qualcomm Incorporated (QCOM - Free Report) is set to report fourth-quarter fiscal 2022 results on Nov 2, after the closing bell. In the last reported quarter, the company delivered an earnings surprise of 3.5%. It pulled off a trailing four-quarter earnings surprise of 8.5%, on average.
This San Diego, CA-based company is expected to have recorded higher revenues year over year, driven by the ramp-up in 5G-enabled chips and strength in its Snapdragon portfolio. The company is increasingly benefiting from advanced radio frequency front-end solutions for high-performance 5G devices and automotive chips.
Factors at Play
During the quarter, Qualcomm extended its long-standing seven-year association with Meta Platforms, Inc. to manufacture new customized processors for the latter’s Quest virtual reality (VR) headsets. Meta’s Quest and Quest 2 VR headsets work on Qualcomm’s Snapdragon chips. The new chips for VR headsets will operate on Qualcomm’s Snapdragon extended reality processors.
It also inked an agreement with chipset manufacturer GlobalFoundries to manufacture advanced 5G multi-gigabit speed RF front-end products to cater to higher demands. The firms extended their RF collaboration to provide sturdy low-power semiconductor solutions with high cellular speeds, enhanced coverage and maximum power efficiency. Such innovative products are likely to have translated into higher revenues in the quarter.
In the to-be-reported quarter, Qualcomm launched its premium wearable platforms, Snapdragon W5+ Gen 1 and Snapdragon W5 Gen 1, for extended battery life and premium user experience. Its flagship Snapdragon 8+ Gen 1 mobile platform is powering Samsung Electronics’ latest cutting-edge foldable smartphones, the Samsung Galaxy Z Fold4 and Galaxy Z Flip4. The new Galaxy Z series devices will also feature the latest Qualcomm FastConnect 6900 Mobile Connectivity System for fast, sustained Wi-Fi and Bluetooth connection. These are likely to have generated incremental revenues in the quarter.
In the fiscal fourth quarter, Qualcomm’s automotive design-win pipeline soared to $30 billion. Driven by the increasing adoption of Snapdragon Digital Chassis solutions across the auto industry, the design win portfolio has improved by more than $10 billion sequentially. Qualcomm is witnessing healthy traction in EDGE networking that helps to transform connectivity in cars, business enterprises, homes, smart factories, next-generation PCs, wearables and tablets. These are likely to be reflected in the upcoming results.
For the September quarter, the Zacks Consensus Estimate for revenues is pegged at $11,382 million, indicating growth of 21.9% from the year-ago quarter’s reported figure. The consensus estimate for adjusted earnings per share stands at $3.15, which suggests an increase of 23.5%.
Earnings Whispers
Our proven model does not predict an earnings beat for Qualcomm for the fiscal fourth quarter. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is not the case here.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is -2.42%, with the former pegged at $3.07 and the latter at $3.15. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
QUALCOMM Incorporated Price and EPS Surprise
QUALCOMM Incorporated price-eps-surprise | QUALCOMM Incorporated Quote
Zacks Rank: Qualcomm has a Zacks Rank #3.
Stocks to Consider
Here are some companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this season:
Unity Software Inc. (U - Free Report) is set to release quarterly numbers on Nov 9. It has an Earnings ESP of +18.52% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Earnings ESP for United States Cellular Corporation (USM - Free Report) is +47.46% and it sports a Zacks Rank of 1. The company is set to report quarterly numbers on Nov 3.
The Earnings ESP for CDW Corporation (CDW - Free Report) is +0.31% and it carries a Zacks Rank of 3. The company is scheduled to report quarterly numbers on Nov 2.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.