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Qualcomm CEO Cristiano Amon.
Patrick T. Fallon/AFP via Getty Images
Qualcomm, the maker of mobile processors and 5G wireless chipsets, is likely to report muted earnings results after Thursday’s market close.
The Wall Street consensus calls for consideration
Qualcomm
(Marker
QCOM
) to report revenue of $9.6 billion for the quarter ended Dec. 31, with adjusted earnings per share of $2.36. Meanwhile, analysts are expecting EPS of $2.29 and revenue of $9.56 billion for the current quarter.
Global smartphone demand has been on the decline. On Tuesday, research firm Canalys said global mobile phone shipments fell 18% year-over-year in the fourth quarter amid tough economic conditions. As a major supplier to the smartphone market, Qualcomm may find it difficult to post strong results.
Earlier this week, Bernstein analyst Stacy Rasgon reiterated his Outperform rating on Qualcomm shares, citing underweight. He also reaffirmed his $140 price target on the stock.
“Weak market and [inventory] Channel Flash is influencing near-term direction, but shares remain very cheap and things look good as they set up into 2024 and Apple’s business hangs around,” he wrote.
Shares of Qualcomm are down about 26 percent over the past 12 months,
iShares Semiconductor ETF
(SOXX)—which tracks the performance of the ICE Semiconductor Index—was down 15%.
Write to Tae Kim at tae.kim@barrons.com
.
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