Is Qualcomm Coming Back in Favor?
A few analysts weighed in on Qualcomm after the better-than-expected earnings report, and they seem positive.
Qualcomm Inc. (NASDAQ: QCOM) reported fiscal second-quarter financial results after the markets closed on Wednesday. The company said it had $1.04 in earnings per share (EPS) on $5.5 billion in revenue. That compares to consensus estimates from Thomson Reuters of $0.96 in EPS on revenue of $5.34 billion. As a result, a few analysts weighed in on Qualcomm the stock after the report, and they seem favorable on it.
In the fiscal second-quarter of the previous year, Qualcomm reported $1.40 in EPS on $6.89 billion in revenue.
However, one argument against a favorable view of Qualcomm is its guidance for the fiscal third quarter. The company expects to have $0.99 in EPS on $5.8 billion in revenue. The consensus estimates call for EPS of $1.02 and $5.56 billion in revenue.
Earlier this month, Qualcomm announced a cash dividend of $0.53 per share, payable on June 22 to stockholders of record on June 1. The dividend represents a 10% increase over the prior quarterly dividend.
[recirclink id=327261]
Steve Mollenkopf, CEO of Qualcomm, commented:
Our fiscal second quarter results were driven by stronger than expected performance across our chipset and licensing businesses. We are pleased with our continued progress in the licensing business, including the recent conclusion of new license agreements in China and the resolution of our dispute with LG Electronics. We are continuing to build momentum into the second half of our fiscal 2016 with traction for our Snapdragon processors in the premium and high tiers and strong execution of our strategic realignment plan.
A few analysts weighed in on the stock after the earnings report was released:
- BMO Capital Markets has a Market Perform rating but raised its target price to $47 from $46.
- Pacific Crest has an Overweight rating but cut its target to $61 from $63.
- Goldman Sachs reiterated its Buy rating and raised its price target to $64 from $56.
- Mizuho reiterated an In-Line rating.
Shares of Qualcomm were trading down 2.3% to $50.90 Thursday morning, with a consensus analyst price target of $56.36 and a 52-week trading range of $42.24 to $71.32.
Contact [email protected] for any questions or corrections.
Chris Lange is a financial and geopolitical writer with more than a decade of experience covering a myriad of topics. He has published thousands of articles for 24/7 Wall St., with past coverage focused heavily on stocks, IPOs, healthcare, defense, global affairs, and technology.
His work has been quoted, or referenced by a number of outlets including Business Insider, USA Today, Yahoo Finance, MSN, The Motley Fool, and many other publications. A graduate of Southwestern University, he studied business with a focus on investments and has previous experience in banking and startups.
When not reading or writing the news, he is following his passion for Lacrosse, playing chess, or building solar projects with his dad.
