What to Expect When Qualcomm Reports After the Closing Bell

By Chris Lange Updated Jan 30, 10:23AM EST · Published Jan 29, 11:15AM EST

Follow 24/7 Wall St. on Google

This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.

What to Expect When Qualcomm Reports After the Closing Bell — © Justin Sullivan / Getty Images

Qualcomm Inc. (NASDAQ: QCOM | QCOM Price Prediction) 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.

[nativounit]

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:

Susquehanna has a Positive rating with a $105 price target.
Citigroup has a Buy rating with a $108 price target.
DZ Bank has a Buy rating with a $104 price target.
Cowen has a Buy rating with a $100 target price.
Deutsche Bank has a Hold rating with a $96 target.
Mizuho has a Buy rating with a $100 price target.

Shares of Qualcomm traded down about 1% on Wednesday, at $88.32 in a 52-week range of $49.10 to $96.17. The consensus price target is $99.37.

[recirclink id=639129]
[wallst_email_signup]

About the Author Chris Lange →

Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics.

Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications.

A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.