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Qualcomm (NASDAQ:QCOM) is scheduled to report its second-quarter earnings on Wednesday, May 1st, after market close.
Analysts expect earnings per share of $2.32 for the quarter on revenues of $9.35 billion.
The U.S. chip designer is expected to modestly beat expectations for second-quarter revenue, despite a muted recovery in the smartphone market. Analysts expect third-quarter guidance largely in-line with estimates.
While the company is expected to benefit from strong demand for Samsung’s (OTCPK:SSNLF) S24 line of phones in the U.S. and Europe, Samsung’s strength is likely to be offset by Apple’s (AAPL) seasonal weakness and market share loss in China.
“We are yet to see any significant change in the fundamentals for the smartphone market with the recovery expected to remain muted in 2024,” said investment firm J.P. Morgan, placing Qualcomm (QCOM) on negative catalyst watch.
Qualcomm (QCOM) remains well positioned to benefit from AI at the edge in both PCs and smartphones. Generative AI is expected to drive the next big refresh for both PCs and smartphones.
The company unveiled its new Snapdragon X Plus chip for PCs on Wednesday. It had announced its Snapdragon 8s Gen 3 Mobile Platform in March, with the ability to handle the computational needs of large language models.
Over the last three months, the company’s estimates have seen significant upgrades. Earnings per share estimates have been revised upwards 20 times vs. three downward moves, while revenue estimates have seen 10 upwards moves, compared to nine downgrades.
Seeking Alpha analysts at large consider QCOM a Buy. This compares with average Wall Street rating of Buy and SA Quant rating of Hold.
