Shares of Qualcomm (NASDAQ:QCOM) gained in after-hours trading after the semiconductor and equipment giant announced its second-quarter earnings, which exceeded market expectations. The company reported earnings of $2.44 per share on revenue of $9.39 billion versus analysts’ predictions of $2.33 per share on revenue of $9.35 billion.
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When breaking down Qualcomm’s revenue, we can see that over 62% of its business comes from China and Hong Kong, as shown in the image below. This is followed by Vietnam and South Korea, at over 12% and 9%, respectively. Only 3.15% of the firm’s revenue comes from the U.S.
For the upcoming third quarter, Qualcomm projects earnings of $2.15 to $2.35 per share and anticipates revenue to fall between $8.8 billion and $9.6B billion. These forecasts, at the midpoint, surpassed analysts’ expectations, which were pegged at earnings of $2.16 per share and revenue of $9.05 billion.
Is Qualcomm a Buy, Sell, or Hold?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on QCOM stock based on 16 Buys, nine Holds, and one Sell assigned in the past three months, as indicated by the graphic below. After a 49% rally in its share price over the past year, the average QCOM price target of $173.71 per share implies 2.86% upside potential.
