Qualcomm Q2 Results Top Estimates; Issues Guidance

Qualcomm (QCOM) delivered record Fiscal Q1 2022 results driven by strong demand for the company’s products and technologies. Chief Executive Officer Cristiano Amon says the company is at the beginning of one of the largest opportunities in its history, with the addressable market expanding by more than seven times to about $700 billion. QCOM shares jumped 6.25% to close at $188.20 on February 2.

Qualcomm is a U.S. company that develops and sells wireless telecommunication products and services. Its offerings are commonly used in mobile devices and other wireless products.

Financial Results

Revenue for the fiscal first quarter was up 30% year-over-year to $10.70 billion, exceeding consensus estimates of $10.41 billion. Diluted earnings per share grew 49% to $3.23, beating consensus estimates of $3.01.

Qualcomm returned $1.9 billion to stockholders during the quarter, including $765 million in cash dividends and $1.2 billion through stock buybacks. Qualcomm’s dividends have increased steadily over the last 13 years, leading to a dividend yield of 1.55%.

Looking ahead, the company expects Fiscal Q2 revenue to come in at between $10.2 billion and $11 billion. Diluted earnings per share are expected at between $2.80 and $3.

Stock Rating

Yesterday, Rosenblatt analyst Kevin Cassidy reiterated a Buy rating on Qualcomm stock with a $225 price target, implying 19.55% upside potential to current levels.

Consensus among analysts is a Moderate Buy based on 11 Buys and 8 Holds. The average Qualcomm price target of $199.18 implies 5.83% upside potential to current levels.

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