Qualcomm (QCOM) is scheduled to report results of its fiscal fourth quarter after the market closes on November 1 with a conference call scheduled for 4:45 pm ET. What to watch for:
GUIDANCE: Along with its last report, Qualcomm guided for Q4 adjusted earnings per share of $1.80-$2.00 on revenue of $8.1B-$8.9B. At the time, analysts were expecting the company to report Q4 EPS of $1.91 on revenue of $8.7B, but those figures have since been adjusted to $1.92 and $8.51B, respectively, according to data from Bloomberg.
SUSQUEHANNA CUTS PT: Last week, Susquehanna lowered the firm’s price target on Qualcomm to $130 from $140 and maintained a Positive rating on the shares. The firm previewed Q3 results for the Semiconductor group and said they see a generally downbeat outlook with perhaps AI the “sole pocket of strength.” They said while many end markets appear to be stabilizing, new headwinds have emerged including weaker ODM for PC, Huawei risks for handsets, and a weakening analog order book.
APPLE CHIP SUPPLY: In early September, Qualcomm announced that it entered into an agreement with Apple (AAPL) to supply Snapdragon 5G Modem-RF Systems for smartphone launches in 2024, 2025, and 2026. This agreement reinforces Qualcomm’s track record of sustained leadership across 5G technologies and products. The company added that the deal assumes a 20% share of chipset supply for the smartphone launch in 2026.After Qualcomm announced the deal, KeyBanc analyst John Vinh called the agreement “positive” for Qualcomm as it removes a near-term overhang on the stock. The firm, which noted that Qualcomm said it contemplates 20% share assumption for the iPhone launch in 2026, maintained an Overweight rating and $145 price target on Qualcomm shares at the time.
U.S. RESTRICTIONS: A number of semiconductor makers were slipping in mid-October after the U.S. Department of Commerce’s Bureau of Industry and Security, or BIS, released a package of rules designed to update export controls on advanced computing semiconductors and semiconductor manufacturing equipment, as well as items that support supercomputing applications and end-uses, to arms embargoed countries, including the PRC, and to place additional related entities in the PRC on the Entity List.”Today’s rules reinforce the October 7, 2022, controls to restrict the PRC’s ability to both purchase and manufacture certain high-end chips critical for military advantage. These updates are necessary to maintain the effectiveness of these controls, close loopholes, and ensure they remain durable,” the BIS stated. “Today’s updated rules will increase effectiveness of our controls and further shut off pathways to evade our restrictions. These controls maintain our clear focus on military applications and confront the threats to our national security posed by the PRC Government’s military-civil fusion strategy. As we implement these restrictions, we will keep working to protect our national security by restricting access to critical technologies, vigilantly enforcing our rules, while minimizing any unintended impact on trade flows,” added Secretary of Commerce Gina Raimondo.More By This Author:Here Is What Wall St. Experts Are Saying About PayPal Ahead Of Earnings Here Is What Wall St. Experts Are Saying About Pinterest Ahead Of Earnings Wall Street’s Top 10 Stock Calls This Week – Saturday, Oct. 28
