Qualcomm First Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Qualcomm (NASDAQ:QCOM) will unveil its latest earnings tomorrow, Wednesday, January 30, 2013. Qualcomm designs and manufactures digital wireless telecommunications products and services based on its CDMA technology and other technologies.

Qualcomm Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of $1 per share, a rise of 17.6% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved up from 89 cents. Between one and three months ago, the average estimate moved up. It has been unchanged at $1 during the last month. Analysts are projecting profit to rise by 16.9% compared to last year’s $3.80.

Last quarter, the company came in at profit of 76 cents per share against a mean estimate of net income of 70 cents per share, beating estimates after missing them in the previous quarter. In the third quarter of the last fiscal year, it missed forecasts by 4 cents.

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Wall St. Revenue Expectations: Analysts predict a rise of 26.1% in revenue from the year-earlier quarter to $5.9 billion.

A Look Back: In the fourth quarter of the last fiscal year, profit rose 20.4% to $1.27 billion (73 cents a share) from $1.06 billion (62 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 18.3% to $4.87 billion from $4.12 billion.

Here’s how Qualcomm traded following its last earnings report 3 months ago and leading up to its upcoming earnings report this week:

qcom

Stock Price Performance: Between October 26, 2012 and January 24, 2013, the stock price rose $5.36 (9.1%), from $59.04 to $64.40. The stock price saw one of its best stretches over the last year between January 27, 2012 and February 7, 2012, when shares rose for eight straight days, increasing 6.5% (+$3.76) over that span. It saw one of its worst periods between October 17, 2012 and October 25, 2012 when shares fell for seven straight days, dropping 5.8% (-$3.55) over that span.

Key Stats:

The company enters this earnings announcement with substantial revenue momentum. The company has averaged year-over-year revenue growth of 28.3% over the last four quarters.

After experiencing income increases the last three quarters, the company is hoping to keep the good news coming with this earnings announcement. Net income rose more than twofold in the second quarter of the last fiscal year and 16.6% in the third quarter of the last fiscal year before increasing again in the fourth quarter of the last fiscal year.

Analyst Ratings: With 32 analysts rating the stock a buy, none rating it a sell and three rating the stock a hold, there are indications of a bullish stance by analysts.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 2.95 last quarter. Having a ratio above 2:1 is usually considered a good indicator of a company’s liquidity and ability to meet creditor demands.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)