How Will Qualcomm (QCOM) Stock React to Q3 Earnings?

Qualcomm (QCOM) is expected to report third-quarter financial results after Wednesday's market close.
By Rachel Graf ,

NEW YORK (TheStreet) -- Shares of Qualcomm (QCOM) - Get Report are up 1.24% to $55.43 despite analysts' expectations that it will report a year-over-year drop in earnings and revenues in its third-quarter results, due out after Wednesday's market close. 

Analysts surveyed by Thomson Reuters are looking for adjusted earnings of 97 cents per share on $5.579 billion in revenues for the quarter.

Last year Qualcomm reported adjusted earnings of 99 cents per share on $5.832 billion in revenue for the 2015 third quarter.

Pacific Crest, which has an "overweight" rating and $59 price target on the stock,expects the company to report in-line third-quarter results but lower its fourth-quarter guidance.

Consistent feedback about soft smartphone demand for the second half of this year and slow company progress signing outstanding China licensees should drive the guidance reduction, according to the firm.

(Qualcomm is held in David Peltier's Dividend Stock Advisor portfolio. See all of his holdings with a free trial.)

Separately, TheStreet Ratings team rates the stock as a "hold" with a ratings score of C+.

Qualcomm's strengths such as its increase in net income, largely solid financial position with reasonable debt levels by most measures and reasonable valuation levels. However, as a counter to these strengths, we find that the stock has had a generally disappointing performance in the past year.

You can view the full analysis from the report here: QCOM

TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author. 

Loading ...