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

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

GUIDANCE: Along with its last report, Qualcomm guided for Q3 adjusted earnings per share of $1.70-$1.90 on revenue of $8.1B-$8.9B. At the time, analysts were expecting the company to report Q3 EPS of $2.16 on revenue of $9.14B, but those figures have since dropped to $1.81 and $8.5B, respectively.

SUSQUEHANNA PT HIKE: Last week, Susquehanna analyst Christopher Rolland raised the firm’s price target on Qualcomm to $145 from $135 and kept a Positive rating on the shares. The firm offered their 2Q semiconductor earnings preview, and in short, expects A.I. to considerably outshine all other end markets. They expectuneven reports for the space, with some benefiting from A.I. and EVs, while others may confess to a softer macro as bookings trends slow and they look out into 2024.

WOLFE STARTS AT OUTPERFORM: Last month, Wolfe Research initiated coverage of Qualcomm with an Outperform rating and $145 price target. Handsets are nearing a cyclical trough after more than a year of inventory correction, and Qualcomm is shipping below customer consumption, which will allow for positive mean reversion once inventory normalizes, the analyst told investors in a research note. The loss of iPhone modem revenue is a source of upside should Apple (AAPL) fail to qualify their modem, the firm said at the time.

JPMORGAN HIKES PT: In mid-July, JPMorgan analyst Samik Chatterjee raised the firm’s price target on Qualcomm to $159 from $145 and maintained an Overweight rating on the stock, with the analyst also adding the shares to JPMorgan’s Analyst Focus List as a growth idea and “Positive Catalyst Watch” into the upcoming earnings print. The firm views the recent rebound in China smartphone sales in the month of May as well as mild restocking demand after inventory clearance for smartphone components as early signs of a return to normal seasonality for the market, even though at lower level. With the combination of the early stages of a recovery as well as Qualcomm shares trading at an “inexpensive valuation,” the firm sees early signs of earnings estimate revisions driving a re-rating of the earnings multiple.

BOFA PT: In June, BofA analyst Tal Liani increased the firm’s price target on Qualcomm to $145 from $130 and maintained a Buy rating on the shares as the firm adjusted targets for several stocks across its Data Networking and Cybersecurity coverage universe. The firm believes Qualcomm’s key risks are “well understood by investors and priced into the stock at this point” and it remains focused on the belief the stock should recover as handset and IoT channel inventories normalize, Chinese handset demand improves, and IoT and Automotive demand recovers.