Technology

Analysts Pile Into Qualcomm After Stellar Earnings

Qualcomm Inc. (NASDAQ: QCOM) reported a strong fiscal third quarter after the markets closed on Wednesday. The overall reaction from investors was very positive, and this was reflected in the following analyst calls as well.

24/7 Wall St. included highlights from both earnings reports, as well as what analysts were saying about each stock after the fact.

The chipmaker posted adjusted diluted earnings per share (EPS) of $1.16 and revenues of $6 billion. In the second quarter of 2015, Qualcomm reported EPS of $0.99 on revenues of $5.8 billion. Thomson Reuters had estimates for EPS of $0.97 and $5.58 billion in revenue.

In its outlook for its fiscal fourth quarter, Qualcomm guided revenues in a range of $5.4 billion to $6.2 billion, compared with the $5.5 billion reported in the fourth quarter a year ago. Adjusted EPS is forecast in a range of $1.05 to $1.15, compared with an actual total of $0.91 last year. Analysts were expecting fourth-quarter EPS of $1.08 on revenues of $5.73 billion.

During the quarter the company returned $781 million to shareholders in the form of dividends and $100 million in share repurchases. The quarterly dividend is $0.53 per share.

Several analysts weighed in on Qualcomm after earnings were reported:

  • Bernstein reiterated a Hold rating.
  • Canaccord Genuity has a Buy rating and raised its price target from $65 to $70.
  • Cowen has an Outperform rating and raised its price target to $62 from $60.
  • Credit Suisse has an Outperform rating and raised its price target to $70 from $67.
  • Exane BNP Paribas has a Neutral rating and raised its target to $54 from $52.
  • JPMorgan has a Buy rating and raised its price target to $63 from $55.
  • Goldman Sachs has a Buy rating and raised its target from $64 to $70.
  • Mizuho has a Neutral rating and raised its price target to $56.
  • Nomura reiterated a Neutral rating and raised its price target to $55 from $50.
  • Pacific Crest has an Overweight rating and raised its price target to $67 from $59.
  • RBC has a Hold rating and raised its price target from $55 to $59.
  • Stifel has a Buy rating and raised its price target to $67 from $59.

Shares of Qualcomm closed most recently at $61.15, with a consensus analyst price target of $61.14 and a 52-week trading range of $42.24 to $64.95.