Qualcomm (QCOM, Financial) has announced second-quarter revenues of $10.98 billion, surpassing analysts' expectations of $10.66 billion. The company attributes its solid performance to its advanced technology offerings and strong product lineup. As it faces the current economic and trade challenges, Qualcomm is focusing on elements within its control, such as fostering solid customer relationships and enhancing operational efficiencies. The company remains committed to its diversification strategy and is investing in areas poised to deliver sustained value over the long term.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 31 analysts, the average target price for Qualcomm Inc (QCOM, Financial) is $191.58 with a high estimate of $270.00 and a low estimate of $145.00. The average target implies an upside of 29.03% from the current price of $148.47. More detailed estimate data can be found on the Qualcomm Inc (QCOM) Forecast page.
Based on the consensus recommendation from 41 brokerage firms, Qualcomm Inc's (QCOM, Financial) average brokerage recommendation is currently 2.4, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Qualcomm Inc (QCOM, Financial) in one year is $166.97, suggesting a upside of 12.46% from the current price of $148.47. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Qualcomm Inc (QCOM) Summary page.
QCOM Key Business Developments
Release Date: February 05, 2025
- Total Revenue: $11.7 billion, a record for the company.
- Non-GAAP EPS: $3.41, above the high end of guidance.
- QCT Revenue: $10.1 billion, a record, with handset revenues at $7.6 billion.
- QTL Revenue: $1.5 billion with an EBT margin of 75%.
- Automotive Revenue: $961 million, representing 61% year-over-year growth.
- IoT Revenue: $1.5 billion, a 36% year-over-year increase.
- QCT EBT Margin: 32%, exceeding the high end of guidance.
- Stockholder Returns: $2.7 billion, including $1.8 billion in stock repurchases and $942 million in dividends.
- Q2 Guidance - Revenue: $10.2 billion to $11 billion.
- Q2 Guidance - Non-GAAP EPS: $2.70 to $2.90.
- Q2 Guidance - QTL Revenue: $1.25 billion to $1.45 billion with EBT margins of 69% to 73%.
- Q2 Guidance - QCT Revenue: $8.9 billion to $9.5 billion with EBT margins of 29% to 31%.
- Non-GAAP Operating Expenses: Approximately $2.25 billion for Q2.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Qualcomm Inc (QCOM, Financial) reported record revenues of $11.7 billion and non-GAAP earnings per share of $3.41, exceeding the high end of their guidance.
- The chipset business achieved record revenues of $10.1 billion, marking the first $10 billion quarter for QCT, with significant contributions from handset and automotive sectors.
- Automotive and IoT revenues grew impressively by 61% and 36% year over year, respectively, showcasing strong diversification efforts.
- The Snapdragon 8 Elite platform has seen strong demand, particularly with the Samsung Galaxy S25 series and Chinese OEMs, indicating robust market traction.
- Qualcomm Inc (QCOM) has expanded its design win momentum in PCs, with over 80 designs in production or development, targeting more than 100 designs by 2026.
Negative Points
- The QTL guidance for fiscal 2025 is flat compared to 2024, indicating potential challenges in maintaining growth in the licensing segment.
- The second fiscal quarter guidance shows a decline in revenues, primarily due to seasonality and shipments to Apple.
- The ongoing negotiations with Huawei remain unresolved, and the current guidance does not include potential revenue from a renewed agreement.
- There is a potential risk of increased costs due to TSMC's price hikes for 3- and 4-nanometer processes, which may impact future ASPs.
- The market for premium-tier smartphones is growing, but the overall smartphone market remains flat, posing challenges for sustained growth.
