What to Expect When Qualcomm Reports After the Closing Bell

Technology

Published: January 29, 2020 11:15 am

Last Updated: January 30, 2020 10:23 am

Qualcomm Inc. (NASDAQ: QCOM) is scheduled to release its fiscal first-quarter earnings report after the closing bell on Wednesday. Analysts are looking for $0.85 in earnings per share (EPS) and $4.83 billion in revenue. The same period of last year reportedly had $1.20 in EPS and $4.84 billion in revenue.

In its fiscal fourth-quarter report, the company issued guidance for this quarter calling for EPS in the range of $0.80 to $0.90 and revenues between $4.4 billion and $5.2 billion, with estimated technology licensing (QTL) revenues for the quarter totaling $1.3 billion to $1.5 billion.

During the fourth quarter, Canaccord Genuity attended Qualcomm’s analyst day and walked away with confidence in the company’s efforts around 5G. In fact, the firm reiterated its Buy rating with a $101 price target. Since then Canaccord Genuity has reiterated a Buy rating and raised it price target again, this time to $115.

In its report, Canaccord Genuity detailed:

We attended Qualcomm’s first Analyst Day in nearly 4 years and came away confident the company is well positioned to benefit from 5G builds, increasing dollar content per phone from RFFE design wins, and maintaining a robust licensing business despite the FTC overhang …. We maintain our positive thesis, as we believe the 9th Circuit Court stay could lead to potentially overturning key parts of Judge Koh’s FTC ruling combined with our belief Qualcomm is well positioned to benefit from the transition to 5G … further, we believe the recent Apple settlement and Samsung and LGE renegotiations protect a strong portion of Qualcomm’s long-term licensing business model.

Excluding Wednesday’s move, Qualcomm stock had outperformed the broad markets with a gain of about 76% in the past 52 weeks. In just the past quarter alone, the stock was up closer to 11%.

A few analysts weighed in on Qualcomm ahead of the report: