Earnings Previews: Albemarle, APA, Qualcomm, Robinhood

The company is currently embroiled in a dispute with chip designer Arm, which has threatened to force Qualcomm’s OEM customers into becoming Arm licensees, cutting Qualcomm out of its role as a supplier of licensed Arm designs to its customers. Arm has claimed that Qualcomm’s recent acquisition of Nuvia violates an already-terminated license agreement between Arm and Nuvia.

Of 33 analysts covering the company, 21 have Buy or Strong Buy ratings, and the other 12 rate the stock a Hold. At a share price of around $117.70, the upside potential based on a median price target of $172.50 is 46.6%. At the high target of $250.00, the upside potential is 112.4%.

Fourth-quarter fiscal 2022 revenue is forecast to come in at $11.37 billion, up 4.1% sequentially and by 22.0% year over year. Adjusted EPS are forecast at $3.13, up 5.9% sequentially and by 22.7% year over year. For the full fiscal year, analysts currently expect the company to post EPS of $12.51, up 46.5%, on sales of $44.12 billion, up 31.8%.

Qualcomm stock trades at about 9.4 times expected 2022 EPS, 9.2 times estimated 2023 earnings, 11.6 times estimated 2023 earnings of $12.77 and 8.8 times estimated 2024 earnings of $13.30 per share. The stock’s 52-week range is $104.66 to $193.58. Qualcomm pays an annual dividend of $3.00 (yield of 2.52%). Total shareholder return over the past 12 months was negative 9.9%.


Within a week of its initial public offering in late July last year, shares of Robinhood Markets Inc. (NASDAQ: HOOD) doubled in price. As of Monday’s close, the stock traded down more than 83% below that high and 66.5% below its IPO price. Among buyers of the stock are Cathie Wood’s ARKF and ARKW ETFs. ARKF has added about $8 million worth of Robinhood shares to its portfolio and is the fund’s sixth-largest position with $55 million invested. ARKW’s position is valued at around $45 million and is the fund’s 13th-largest position.

Just 14 brokerages cover the stock. Of those, just four have a Buy or Strong Buy rating and six more rate the share at Hold. At a recent price of around $11.70, the shares have outrun their median price target of $10.65. At the high price target of $13.00, the upside potential is 11.1%.

For the third quarter of 2022, revenue is forecast at $367.8 million, up 15.7% sequentially and less than 1% higher year over year. Analysts are looking for an adjusted loss per share of $0.25, compared to a loss of $0.31 per share in the previous quarter and the year-ago loss of $0.07. For the full fiscal year, current consensus estimates call for an adjusted loss per share of $1.13, far below the 2021 fiscal year loss of $7.49 per share. Revenue is forecast at $1.38 billion, down 24.1%.

Robinhood is not expected to post a profit until 2024. Shares trade at a multiple of 28.9 times estimated 2024 EPS of $0.40. The stock’s 52-week range is $6.81 to $38.17. The company does not pay a dividend. The total shareholder return for the past year was negative 66.6%.

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