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Key Takeaways
- Qualcomm is set to report earnings after the bell Wednesday, with analysts expecting growth in revenue and a larger bump in profits.
- Analysts mostly have neutral ratings on the software and hardware maker, but still believe the stock has the ability to rise in the coming months.
- However, JPMorgan analysts on Tuesday said a sluggish smartphone and PC market could slow Qualcomm’s revenue growth in its next fiscal year.
Qualcomm (QCOM) will report its fourth quarter earnings after the market closes Wednesday, and analysts expect rising revenue and profits compared to the same time last year. However, they see revenue growth slowing over the next year amid slow smartphone and PC sales.
Analysts are somewhat bullish on the hardware and software manufacturer’s stock, with the 12 analysts tracked by Visible Alpha split between four “buy,” seven “hold,” and one “sell” rating. Qualcomm’s average price target of $198.08 shows that analysts think the stock has room to rise in the coming months.
In the fourth quarter, analysts expect Qualcomm’s revenue will rise nearly 15% from the same time last year to $9.9 billion, with profits projected to rise over 70% to $2.58 billion, according to estimates compiled by Visible Alpha.
Qualcomm stock rose 3% Wednesday to $170.87, about 17% above where it started the year but below the June highs of over $220.
Weak Smartphone, PC Market Could Hurt Qualcomm’s Sales Growth
In a note ahead of Qualcomm’s earnings, JPMorgan analysts lowered their estimates for Qualcomm’s revenue and profit performance in fiscal 2025. The analysts said the “lack of recovery in the smartphone market” and only “modest” adoption of artificial intelligence (AI)-powered smartphones and PCs that Qualcomm helps produce could slow the company’s revenue growth in the next fiscal year.
The analysts retained an “overweight” rating, but lowered their price target to $195 from $210.