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Qualcomm headquarters in San Diego, California.
Bing Juan/Bloomberg
Qualcomm might make a muted prediction when the maker of cell processors and 5G wi-fi chipsets will report earnings for its third fiscal quarter after market shut.
Wall Road consensus estimates for
Qualcomm
(Inventory ticker: QCOM) for the corporate to report June quarter income of $8.5 billion with adjusted earnings per share of $1.81. Analyst estimates for the present quarter are for earnings per share of $1.92 on income of $8.7 billion.
World demand for smartphones has been weak. Final week, analysis agency Canalys mentioned worldwide cellphone shipments within the second quarter decreased 10% on an annual foundation.
Taiwanese semiconductor trade
(TSM) mentioned final month that the smartphone market had deteriorated over the previous three months.
As a bigger provider to the cell market, it might be troublesome for Qualcomm to publish sturdy outcomes over the subsequent few months.
On Monday, Bernstein analyst Stacy Rasgon reiterated his Outperform ranking for Qualcomm inventory and reaffirmed its $135 value goal. However he admitted that Qualcomm’s finish market has not but recovered.
“Smartphones are nonetheless very weak,” he wrote, including that his estimate of Qualcomm’s income within the September quarter is $8.5 billion, which is decrease than the present consensus.
Whereas there’s uncertainty in regards to the enterprise, Rasgon says a decrease valuation for Qualcomm inventory is enticing if the market finally recovers.
Qualcomm shares are down about 11% over the previous 12 months, in comparison with a 30% rise in
iShares Semiconductor
Alternate-traded fund (SOXX), which tracks the ICE Semiconductor Index.
Write to Tae Kim at tae.kim@barrons.com