Qualcomm Inc (QCOM)

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Earnings Preview: Qualcomm Inc. (NASDAQ: QCOM)
By: 24/7 Wall St. | May 2, 2023

• Here is a look at two companies set to report results after markets close on Wednesday.

Qualcomm

Networking chip and equipment maker Qualcomm Inc. (NASDAQ: QCOM) has seen its share price drop about 17% over the past 12 months. Since the beginning of 2023, shares are up about 5.4%, including a 17% decline between early February and mid-March. The company is expected to announce a layoff of 5% of its employees (approximately 2,500) when it reports results Wednesday.

The company’s latest version of its Snapdragon processor for smartphones is rumored to be a challenger to Apple’s latest iPhone Bionic chip.

Of 31 analysts covering the company, 21 have a Buy or Strong Buy rating and another nine rate the stock at Hold. At a share price of around $116.00, the upside potential based on a median price target of $150.00 is 29.3%. At the high target of $180.00, the upside potential is 55.2%.

Second-quarter fiscal 2023 revenue is forecast to come in at $9.12 billion, down 3.6% sequentially and 18.7% lower year over year. Adjusted EPS are forecast at $2.16, down 9.0% sequentially and by 32.7% year over year. For the full fiscal year ending in September, analysts expect the company to post EPS of $9.41, down 24.9%, on sales of $37.78 billion, down 14.2%.
Qualcomm stock trades at 12.3 times expected 2023 EPS, 10.2 times estimated 2024 earnings of $11.40 and 10.6 times estimated 2025 earnings of $10.95 per share. The stock’s 52-week range is $101.93 to $156.66. Qualcomm pays an annual dividend of $3.20 (yield of 2.81%). Total shareholder return over the past 12 months was negative 15.12%.

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