Earnings Preview for Qualcomm (QCOM) 2Q 2011
Qualcomm (QCOM) is slated to report 2Q 2011 earnings after the close on Wednesday, April 20. The results are expected to come through at 4:00 p.m. EST, with a conference call slated to follow at 4:30 p.m. Sympathy Plays: NOK BRCM TXN.
Outliers & Strategy
- Key Measures:
- Non-GAAP Earnings Per Share (EPS)
- Adjusted EPS Guidance & Revenue Guidance (3Q 2011)
- Qualcomm is expected to earn $0.80 per share (range is $0.78 to $0.85) (Source: Yahoo! Finance). The company previously provided a range of $0.77 to $0.81.
- Revenues are estimated to come in at $3.62 bln, the higher end of the company’s range of $3.45 – $3.75 bln.
- At 24.5x trailing earnings, Qualcomm trades in-line with its 5-year average, but just 16x forward profits, resulting in a PEG ratio of 1.1, implying the company is trading in-line with its earnings growth rate.
- Over past quarters, Qualcomm has benefited from its relationship with Apple, supplying chips for the popular iPhone device.
- 04/18: FBR Capital reiterated an Outperform rating on Qualcomm and raised the price target from $60 to $62. The firm reportedly believes current Street estimates are too low, while the shares trade at a reasonable valuation. Barron’s
- 04/15: Nomura Securities maintained a Neutral rating on Qualcomm ahead of its 2Q earnings release. The firm is looking for a strong quarter, citing increased 3G adoption, market share gains, and its relationship with Apple. Barron’s
- 04/14: Sterne Agee expects Qualcomm to earn $0.78 per share on revenue of $3.55 bln in the 2Q. The firm points out that Qualcomm has several tailwinds in the second half of the year, including iPhone 4 & 5, along with and tablet growth. Barron’s
- 04/07: Qualcomm announced a quarterly cash dividend of $0.215 per common share payable on June 24, 2011.
- 03/16: Qualcomm stated it does not see any supply disruptions stemming from the Japanese earthquake.