Here’s what Wall Street is saying about Qualcomm ahead of earnings

Wall Street sees Q1 EPS $2.34, revenue $9.6B

Qualcomm (QCOM) is scheduled to report results of its fiscal first quarter after the market closes on February 2 with a conference call scheduled for 4:45 pm ET. What to watch for:

LAST QUARTER/GUIDANCE: Last quarter, Qualcomm reported Q4 adjusted earnings per share of $3.13 on revenue of $11.4B, roughly in line with analysts’ estimates for $3.13 and $11.37B, respectively. Along with the report, the company guided for Q1 adjusted EPS of $2.25-$2.45 on revenue of $9.2B-$10B. At the time, analysts were expecting the company to report Q1 EPS of $3.42 on revenue of $12.02B, but those figures have since dropped to $2.34 and $9.6B, respectively.

BARCLAYS UPGRADE: Late last month, Barclays analyst Blayne Curtis upgraded Qualcomm to Overweight from Equal Weight with a price target of $150, up from $120. The analyst rolled out 2024 estimates and became more positive on the semiconductor group but incrementally more negative on semiconductor capital equipment. Curtis prefers stocks in 2023 that offer exposure to data center, PC and handset, adding that while the handset market has been correcting since the second half of 2021, softer forecasts for Q1 of 2023 could potentially be "the last major cut." Barclays believes headwinds in China can shift to tailwinds in the second half of 2023.

IRIDIUM: In early January, Iridium Communications (IRDM) announced it entered into an agreement with Qualcomm to enable satellite messaging and emergency services in smartphones powered by Snapdragon Mobile Platforms. Qualcomm Technologies’ new Snapdragon Satellite solution is supported by the fully operational Iridium satellite constellation. Emergency messaging using Snapdragon Satellite is expected to debut starting in the second half of 2023 in premium Android smartphones launched in select regions.

GARTNER PC SHIPMENTS: Worldwide shipments of total devices PCs, tablets and mobile phones are projected to decline 4.4% in 2023, to total 1.7B units, according to Gartner. In 2022, the devices shipment market declined 11.9%."The depressed economic market will continue to dampen demand for devices throughout 2023. In fact, end-user spending on devices is projected to decline 5.1% in 2023," said Ranjit Atwal, Senior Director Analyst at Gartner. "Just as business confidence was beginning to recover after the worst of the pandemic, it has now fallen significantly in most regions. We do not expect relief from inflation and the bottom of the recession to occur until the fourth quarter of 2023." The downward trend affecting the devices market will lessen in 2023 on the expectation of a less pessimistic economic outlook through 2023, eventually increasing consumer and business spending.

Keywords: fly intel, wall street, earnings, guidance, snapdragon, gartner