Semiconductor giant Qualcomm (NASDAQ:QCOM) is set to announce its earnings after market hours tomorrow, amid expectations of continued revenue decline. Analysts have projected a year-on-year (YoY) revenue decrease of 25.2% to $8.52 billion and adjusted earnings of $1.91 per share for this quarter. This anticipated decline contrasts with a 22.1% revenue increase in the same quarter last year.
In the previous quarter, Qualcomm reported a YoY revenue drop of 22.7% to $8.45 billion, missing analyst expectations by 0.66%. The company's operating margin also declined, and it provided disappointing revenue guidance for the next quarter. Most analysts have kept their estimates unchanged recently, suggesting they expect Qualcomm to remain on its current path – one that has seen it miss Wall Street's revenue estimates twice in the past two years.
Tech stocks have experienced declining investor sentiment since 2022, with an overall share price decline of 11.8%. Over the past month, Qualcomm's share price has fallen by 3.28%. The analyst price target for Qualcomm is $136.9, compared to its current share price of $107.46.
In comparison, Intel (NASDAQ:INTC)'s revenues fell by 7.69% YoY in the last quarter but beat analyst estimates by 4.12%, leading to a stock rise of 7.1%. Meanwhile, SMART's revenues dropped by 27.7%, missing estimates by 15.6% and causing a stock fall of 23.6%.
Amid these trends in the tech sector, generational shifts in the economy are leading to a surge in demand for cloud-native cybersecurity. This sector is witnessing a 70% YoY revenue growth and boasts best-in-class Software as a Service (SaaS) metrics.
InvestingPro Insights
According to InvestingPro's real-time data, Qualcomm's market cap stands at $120.34B USD with a P/E ratio of 14.02. Over the last twelve months as of Q3 2023, the company's revenue was $38.58B USD, indicating a decrease of 8.44%. The company's return on assets for the same period was an impressive 17.94%.
InvestingPro Tips reveal that Qualcomm has consistently raised its dividend for 21 consecutive years, a sign of financial stability and commitment to shareholder returns. The company operates with a high return on assets, demonstrating efficient use of its resources. Despite analysts anticipating a sales decline in the current year, Qualcomm remains a prominent player in the Semiconductors & Semiconductor Equipment industry.
For those interested in more insights, the InvestingPro platform offers an additional 10 tips about Qualcomm's financial performance and market position. These tips could be invaluable for investors looking to understand the company's potential in the current market conditions.
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