Qualcomm's Upcoming Earnings: What You Need to Know

Seth Jayson, The Motley Fool
Updated

Qualcomm (NAS: QCOM) is expected to report Q3 earnings on July 18. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Qualcomm's revenues will increase 29.1% and EPS will increase 17.8%.

The average estimate for revenue is $4.68 billion. On the bottom line, the average EPS estimate is $0.86.


Revenue details
Last quarter, Qualcomm booked revenue of $4.94 billion. GAAP reported sales were 28% higher than the prior-year quarter's $3.87 billion.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, non-GAAP EPS came in at $1.01. GAAP EPS of $1.28 for Q2 were 117% higher than the prior-year quarter's $0.59 per share.

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Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 63.9%, 870 basis points worse than the prior-year quarter. Operating margin was 32.6%, 730 basis points worse than the prior-year quarter. Net margin was 45.1%, 1,930 basis points better than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $19.22 billion. The average EPS estimate is $3.74.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 2,346 members out of 2,485 rating the stock outperform, and 140 members rating it underperform. Among 495 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 470 give Qualcomm a green thumbs-up, and 25 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Qualcomm is outperform, with an average price target of $69.56.

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At the time thisarticle was published Seth Jaysonhad no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool owns shares of Qualcomm. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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