Analysts Expect QUALCOMM, Inc. (QCOM) Will Post Earnings of $0.71 Per Share

Analysts expect QUALCOMM, Inc. (NASDAQ:QCOM) to announce earnings of $0.71 per share for the current quarter, Zacks reports. Five analysts have provided estimates for QUALCOMM’s earnings, with the lowest EPS estimate coming in at $0.69 and the highest estimate coming in at $0.75. QUALCOMM posted earnings of $0.83 per share in the same quarter last year, which would suggest a negative year-over-year growth rate of 14.5%. The business is scheduled to report its next earnings results after the market closes on Wednesday, July 25th.

According to Zacks, analysts expect that QUALCOMM will report full year earnings of $3.29 per share for the current financial year, with EPS estimates ranging from $3.13 to $3.35. For the next financial year, analysts forecast that the firm will report earnings of $3.53 per share, with EPS estimates ranging from $3.20 to $3.90. Zacks’ EPS averages are a mean average based on a survey of sell-side research analysts that that provide coverage for QUALCOMM.

QUALCOMM (NASDAQ:QCOM) last posted its earnings results on Wednesday, April 25th. The wireless technology company reported $0.80 EPS for the quarter, beating the Zacks’ consensus estimate of $0.70 by $0.10. QUALCOMM had a negative net margin of 20.16% and a positive return on equity of 16.48%. The company had revenue of $5.20 billion during the quarter, compared to analysts’ expectations of $5.21 billion. During the same quarter in the prior year, the company posted $1.34 earnings per share. QUALCOMM’s revenue for the quarter was down 13.3% compared to the same quarter last year.

A number of equities research analysts recently commented on QCOM shares. Morgan Stanley started coverage on shares of QUALCOMM in a research report on Monday, March 19th. They set an “underweight” rating and a $55.00 target price for the company. Wells Fargo & Co started coverage on shares of QUALCOMM in a research report on Friday, March 16th. They set a “market perform” rating for the company. Macquarie decreased their price target on shares of QUALCOMM from $70.00 to $55.00 and set a “neutral” rating for the company in a report on Thursday, April 26th. BidaskClub cut shares of QUALCOMM from a “sell” rating to a “strong sell” rating in a report on Thursday, March 22nd. Finally, UBS Group started coverage on shares of QUALCOMM in a report on Thursday, April 5th. They issued a “neutral” rating and a $56.00 price target for the company. Three equities research analysts have rated the stock with a sell rating, thirteen have issued a hold rating and ten have assigned a buy rating to the company’s stock. QUALCOMM has a consensus rating of “Hold” and a consensus target price of $63.50.

NASDAQ:QCOM traded up $0.22 during midday trading on Friday, reaching $56.12. 11,273,959 shares of the stock traded hands, compared to its average volume of 8,840,074. QUALCOMM has a 12-month low of $48.56 and a 12-month high of $69.28. The company has a quick ratio of 3.46, a current ratio of 3.60 and a debt-to-equity ratio of 0.81. The stock has a market capitalization of $82.89 billion, a price-to-earnings ratio of 14.85, a PEG ratio of 1.80 and a beta of 1.50.

QUALCOMM declared that its Board of Directors has initiated a stock buyback program on Wednesday, May 9th that allows the company to buyback $10.00 billion in shares. This buyback authorization allows the wireless technology company to reacquire up to 12.7% of its shares through open market purchases. Shares buyback programs are usually an indication that the company’s board of directors believes its stock is undervalued.

The firm also recently announced a quarterly dividend, which was paid on Wednesday, June 20th. Investors of record on Wednesday, May 30th were issued a dividend of $0.62 per share. This represents a $2.48 annualized dividend and a dividend yield of 4.42%. The ex-dividend date of this dividend was Tuesday, May 29th. This is a boost from QUALCOMM’s previous quarterly dividend of $0.57. QUALCOMM’s dividend payout ratio (DPR) is 65.61%.

In related news, EVP Alexander H. Rogers sold 1,052 shares of the firm’s stock in a transaction on Tuesday, May 29th. The shares were sold at an average price of $59.55, for a total transaction of $62,646.60. Following the completion of the transaction, the executive vice president now owns 8,787 shares of the company’s stock, valued at $523,265.85. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, EVP Alexander H. Rogers sold 662 shares of the firm’s stock in a transaction on Friday, April 27th. The stock was sold at an average price of $50.75, for a total transaction of $33,596.50. Following the transaction, the executive vice president now directly owns 8,132 shares of the company’s stock, valued at approximately $412,699. The disclosure for this sale can be found here. In the last three months, insiders have sold 30,255 shares of company stock valued at $1,612,477. 0.17% of the stock is currently owned by corporate insiders.

Several institutional investors have recently modified their holdings of the stock. Global Financial Private Capital LLC grew its position in QUALCOMM by 8.1% during the fourth quarter. Global Financial Private Capital LLC now owns 39,953 shares of the wireless technology company’s stock valued at $2,558,000 after buying an additional 3,000 shares during the period. Middleton & Co Inc MA grew its position in QUALCOMM by 4.2% during the fourth quarter. Middleton & Co Inc MA now owns 92,050 shares of the wireless technology company’s stock valued at $5,893,000 after buying an additional 3,750 shares during the period. Sentry Investment Management LLC grew its position in QUALCOMM by 2.0% during the fourth quarter. Sentry Investment Management LLC now owns 118,977 shares of the wireless technology company’s stock valued at $7,617,000 after buying an additional 2,347 shares during the period. NuWave Investment Management LLC acquired a new stake in QUALCOMM during the fourth quarter valued at $1,123,000. Finally, MPI Investment Management Inc. acquired a new stake in QUALCOMM during the fourth quarter valued at $2,359,000. 76.91% of the stock is owned by hedge funds and other institutional investors.

About QUALCOMM

QUALCOMM Incorporated designs, develops, manufactures, and markets digital communication products worldwide. It operates through three segments: Qualcomm CDMA Technologies (QCT); Qualcomm Technology Licensing (QTL); and Qualcomm Strategic Initiatives (QSI). The QCT segment develops and supplies integrated circuits and system software based on code division multiple access (CDMA), orthogonal frequency division multiple access, and other technologies for use in wireless voice and data communications, networking, application processing, multimedia, and global positioning system products.

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