Qualcomm Likely to Post Double-Digit Growth in Q1 Earnings and Revenue
The world’s biggest mobile phone chipmaker, Qualcomm, is expected to report its fiscal first-quarter earnings of $2.77 per share, which represents a year-over-year decline of over 40% from $1.97 per share seen in the same period a year ago.
The chip manufacturer would post revenue growth of nearly 27% to $10.45 billion. It is worth noting that the company has consistently beaten consensus earnings estimates in the last two years, at least.
Qualcomm forecasts GAAP revenue in the first quarter of fiscal 2022 to be between $10 billion and $10.8 billion. On a non-GAAP basis, earnings will likely range from $2.90 to $3.10 per share, while GAAP earnings will likely range from $2.53 to $2.73 per share, according to ZACKS Research.
Qualcomm will release its first-quarter fiscal 2022 results on Wednesday, February 2.
Qualcomm stock traded 1.20% higher at $163.25 on Friday. The stock fell over 10% so far this year after surging over 20% in 2021.
“After underperforming the SOXX for most of 2021 until a sharp rally late in the year, we see a strong setup for a now Apple-overhang-free Qualcomm in 2022 as investors begin to appreciate the diverse revenue drivers beyond Wireless. Expect solid print and guide, with focus on execution and growth in the connected intelligent edge and update our estimates accordingly,” noted Matthew Ramsay, equity analyst at Cowen.
“We reiterate our price target of $210 based on 17.5x our F2023 EPS estimate of $12.0 and our Outperform rating.”
Qualcomm Stock Price Forecast
Twenty-one analysts who offered stock ratings for Qualcomm in the last three months forecast the average price in 12 months of $198.11 with a high forecast of $225.00 and a low forecast of $160.00.
The average price target represents a 20.36% change from the last price of $164.60. Of those 21 analysts, 12 rated “Buy”, nine rated “Hold” while none rated “Sell”, according to Tipranks.
Morgan Stanley gave the base target price of $215 with a high of $258 under a bull scenario and $138 under the worst-case scenario. The investment bank gave an “Overweight” rating on the semiconductor company’s stock.
“We see an improvement in smartphone demand in 2021 after declining 5% in 2020 due to Covid-19. We also see 5G adding greater dollar content and supporting industry-wide handset volume growth. Qualcomm’s (QCOM) leadership in cellular technologies (3G/4G/5G) puts the company in a favorable position to maintain leading market share,” noted Joseph Moore, equity analyst at Morgan Stanley.
“The potential elimination of a major competitor in the Chinese market, HiSilicon, should benefit Qualcomm as Huawei currently does not pay royalties. To the extent competitors that do pay royalties are able to pick up market share, that would be beneficial for Qualcomm.”
Several other analysts have also updated their stock outlook. Barclays raised the target price to $185 from $180. Citigroup lifted the price target to $180 from $165. CFRA upped the target price to $190 from $160. Jefferies increased the target price to $180 from $160.
Technical analysis suggests it is good to buy as 100-day Moving Average and 100-200-day MACD Oscillator signals a buying opportunity.
Check out FX Empire’s earnings calendar