Full 360-Degree Earnings Preview for Qualcomm (QCOM, ARMH, BRCM)
February 1, 2012 by Jon C. Ogg
QUALCOMM Inc. (NASDAQ: QCOM) is now even closer to its 52-week high ahead of this afternoon’s expected earnings report. Shares are now around $59.15 and the 52-week range is $45.98 to $59.84. Thomson Reuters has estimates of $0.90 EPS on $4.57 billion in revenues. Next quarter estimates are $0.89 EPS and $4.49 billion in sales. Keep in mind that if it rallies much more than the current $98.8 billion market cap will be $100 billion.
We have now seen positive earnings out of ARM Holdings plc (NASDAQ: ARMH) Jim Cramer turned out to be very spot on when it came to his relative value tout in Broadcom Corporation (NASDAQ: BRCM) with its post-earnings reaction being up 7%.
Options traders are braced for a move of up to about $2.00 in either direction based upon the monthly expirations of puts and calls.
With the stock near a year high, the chart does not offer any great reads right now other than that the most recent support was around $57.25 and if the news is really unpleasant then the 50-day moving average is $55.37 and the 200-day moving average is $54.02.
Analysts still lean toward a ‘Buy’ consensus for their official ratings bias. Thomson Reuters has a consensus target (mean target) of almost $66.00.
We would probably lean twoard waiting another quarter before expecting Qualcomm to boost its dividend, which has been the same for three consecutive quarters and currently offers investors a 1.5% yield.
JON C. OGG
