Back to top

Image: Shutterstock

Qualcomm Q4 Preview: Double-Digit Earnings Growth in Store?

Read MoreHide Full Article

The Zacks Computer and Technology Sector has struggled to find its footing in 2022 amid a hawkish pivot from the Fed, down more than 30% and widely lagging behind the S&P 500.

Qualcomm Inc. (QCOM - Free Report) , a company in the realm, is on deck to unveil quarterly earnings on November 2nd after the market close.

Qualcomm designs, manufactures, and markets digital wireless telecom products and services based on the Code Division Multiple Access (CDMA) technology.

Currently, the company carries a Zacks Rank #3 (Hold) paired with an overall VGM Score of an A.

How does everything else stack up for the company heading into the print? Let’s take a closer look.

Share Performance & Valuation

Qualcomm shares have experienced adverse price action year-to-date, down more than 30% and widely lagging behind the S&P 500.

Zacks Investment Research
Image Source: Zacks Investment Research

Over the last three months, QCOM shares have continued to struggle, down nearly 20% and again lagging the general market.

Zacks Investment Research
Image Source: Zacks Investment Research

Still, QCOM shares aren’t expensive by any stretch; the company’s 10.5X forward earnings multiple is a fraction of its 21.1X five-year median, reflecting a 52% discount relative to its Zacks Computer and Technology sector.

The company boasts a Style Score of an A for Value.

Zacks Investment Research
Image Source: Zacks Investment Research

Quarterly Estimates

A singular analyst has lowered their earnings outlook for the quarter over the last several months. Still, the Zacks Consensus EPS Estimate of $3.15 suggests a rock-solid 23% Y/Y uptick in quarterly earnings.

Zacks Investment Research
Image Source: Zacks Investment Research

Revenue estimates are also inspiring; the Zacks Consensus Sales Estimate of $11.4 billion indicates a Y/Y uptick of nearly 22%.

Quarterly Performance & Market Reactions

QCOM has a mighty strong earnings track record; the company has exceeded both earnings and revenue estimates in six consecutive quarters.

Just in its latest print, Qualcomm penciled in a 3.5% EPS beat paired with a modest 0.5% sales surprise. Below is a chart illustrating the company’s revenue on a quarterly basis.

Zacks Investment Research
Image Source: Zacks Investment Research

Additionally, it’s worth noting that the market has primarily cheered on the company’s results, with shares moving upward following five of the last six prints. Still, the one downward move shares took occurred following its latest release.

Putting Everything Together

QCOM shares have struggled to find their footing across several timeframes, indicating that sellers have had a tight grip.

The company’s forward earnings multiple is nearly half its five-year median and well below its Zacks Sector average.

A singular analyst has lowered their quarterly outlook, with estimates indicating strong Y/Y upticks in both revenue and earnings.

The company has consistently exceeded quarterly estimates, and the market has primarily cheered on the results across its last six releases.

Heading into the print, Qualcomm (QCOM - Free Report) carries a Zacks Rank #3 (Hold) with an Earnings ESP Score of -2.4%.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


QUALCOMM Incorporated (QCOM) - free report >>

Published in