Investors sentiments on QUALCOMM, Inc. (NASDAQ:QCOM) remain subdued ahead of the second quarter results announcement. Investors would now look for the company to offer upbeat outlook and came out with its stand on the legal issues being fought at different courts involving some expenses. Some believe that the stock is in an oversold position since the stock is getting hammered for one or the other reasons.
While releasing first quarter results, QUALCOMM offered earnings outlook of $1.15 – $1.25 a share on revenue of $5.5 – $6.3 billion. While adjusted EPS is predicted to grow between 11 and 20 percent, revenue is estimated to decrease one percent to a growth of 13 percent. The company projected GAAP EPS of 89 – 99 cents.
Street analysts are looking for an EPS of $1.20 and revenue of $5.91 billion for the March quarter. Street estimates revenue to grow 6.8 percent. The company’s earnings have exceeded the Street predictions in all the trailing four quarters. The positive earnings percentage ranged between 0.8 percent and 19.6 percent. There was only one revision in EPS projection in the last 90-day period and that was an upward one.
For the third quarter, analysts expect Qualcomm to earn $1.11 a share and revenue of $5.96 billion. Both earnings and the top line are expected to see a year-over-year fall in third quarter. Therefore, any forecast should be better than this forecast to be cheered by investors. Given the tough competitive environment, it would not be an easy task.
In the current month alone, there are four analysts, who have given their opinion about Qualcomm shares. While Stifel Nicolaus and Mizuho reiterating their buy rating, Jefferies Group and Royal Bank of Canada have reiterated their Hold rating. They all have price target of $60 and above on the stock. If RBC has price tag of $60, Stifel sees a price objective of $64. Similarly, Mizuho and Jefferies have a target price of $75 and $78 respectively.
On the whole, there are 30 analysts, have given their rating and target price on Qualcomm shares. While 14 have a buy rating 15 have Hold rating. Only one analyst has a Sell rating on the chip maker stock. Shares suffered a drop of 19.22 percent in the current year-to-date and 8.14 percent in April alone. Therefore, investors will look towards upbeat outlook to stimulate sentiments on the stock.
On Tuesday, Qualcomm shed 0.42 percent.