Qualcomm’s (NASDAQ:QCOM) latest third-quarter earnings announcement left investors with mixed feelings as shares dipped in after-hours trading. The numbers told a complex story: adjusted earnings per share of $1.87 beat expectations of $1.81, but $8.44B in revenue missed expectations by 70 million. In addition, QCT revenue plummeted by 24%, ending at $7.17B, while the QTL segment also suffered a 19% reduction year-over-year, landing at $1.23B. Automotive-related revenue provided a ray of sunshine, with a 13% annual increase to $434M.
Looking to the future, Qualcomm’s forecast could be described as cautiously optimistic at best. Expectations for the fourth quarter place adjusted earnings between $1.80 and $2 per share, with revenue hovering between $8.1B and $8.9B. At the midpoint, this outlook falls short of analyst predictions, which anticipated adjusted earnings of $1.94 per share and $8.79B in revenue.
Turning to Wall Street, analysts have a Moderate Buy consensus rating on QCOM stock based on 15 Buys, six Holds, and zero Sells assigned in the past three months, as indicated by the graphic above. Furthermore, the average price target of $137.04 per share implies 6% upside potential.
