San Diego-based Qualcomm (NASDAQ:QCOM) Inc. has reported a profit of $1.49 billion for its fiscal fourth quarter, surpassing Wall Street expectations. The chipmaker's earnings per share (EPS) rose to $2.02 after adjusting for stock option expense, beating Zacks Investment Research's average analyst prediction of $1.92 per share. Qualcomm's revenue for the period was a notable $8.63 billion, exceeding analysts' projections of $8.55 billion.
On Thursday, Qualcomm's Q3 2023 earnings were reported to have surpassed Zacks' estimate by 5.21% at $2.02 per share, although this was lower than the previous year's $3.13 per share. This performance reflects the company's trend in recent quarters of beating EPS estimates.
However, Qualcomm's Q3 2023 revenues stood at $8.63 billion, marking a year-on-year decrease from $11.4 billion, despite outperforming Zacks' estimate by 0.94%. The immediate price and future prospects of the stock are expected to be influenced by management commentary and Zacks Rank trends, which are shaped by past performance, revenue decreases, and revenue estimates.
Looking forward, for the upcoming quarter ending in December, Qualcomm anticipates its per-share earnings to fall between $2.25 and $2.45. This projection contrasts with analysts' higher forecast of $3.18 per share. Additionally, Qualcomm expects its fiscal first-quarter revenue to be in the range of $9.1 billion to $9.9 billion, a figure significantly less than the estimated $11.85 billion by analysts.
These forecasts raise questions about the company's future performance and have potentially contributed to uncertainty in the markets regarding Qualcomm's upcoming financial results.
InvestingPro Insights
According to InvestingPro, Qualcomm has a history of yielding high returns on invested capital and has consistently raised its dividend for 21 consecutive years. This demonstrates the company's commitment to delivering value to its shareholders, a key point of interest for potential investors.
InvestingPro's real-time data reveals an adjusted market cap of $123.75 billion and a P/E ratio of 14.34 as of Q3 2023, indicating a balanced valuation when compared to industry peers. The company's revenue for the last twelve months stood at $38.58 billion, despite a decline of 8.44%. However, the gross profit margin remained strong at 56.31%, reflecting the company's ability to maintain profitability amidst revenue fluctuations.
In addition to these insights, InvestingPro offers numerous other tips and data points for investors looking to gain a comprehensive understanding of Qualcomm's financial performance and prospects.
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