Qualcomm Stock Earnings Estimates Cut by Erste Group Bank

Key Points

• Erste Group Bank lowered Qualcomm’s FY2027 EPS estimate to $7.28 from $7.31, below the current consensus estimate of $7.71.
• Qualcomm’s latest quarter showed a slight EPS miss at $2.21 versus $2.23 expected, while revenue exceeded estimates at $9.95 billion but declined 4% year over year.
• Analyst sentiment remains cautious, with a consensus “Hold” rating and average price target of $205.83; Qualcomm also declared a quarterly dividend of $0.92 per share, yielding about 2.1%.

Qualcomm Incorporated (NASDAQ:QCOM - Free Report) - Analysts at Erste Group Bank reduced their FY2027 earnings per share (EPS) estimates for shares of Qualcomm in a research report issued to clients and investors on Wednesday, October 21st. Erste Group Bank analyst H. Engel now anticipates that the wireless technology company will earn $7.28 per share for the year, down from their prior forecast of $7.31. The consensus estimate for Qualcomm's current full-year earnings is $7.71 per share.

Qualcomm (NASDAQ:QCOM - Get Free Report) last released its quarterly earnings data on Wednesday, July 29th. The wireless technology company reported $2.21 EPS for the quarter, missing analysts' consensus estimates of $2.23 by ($0.02). Qualcomm had a return on equity of 38.36% and a net margin of 21.01%. The company had revenue of $9.95 billion for the quarter, compared to the consensus estimate of $9.69 billion. During the same period last year, the firm earned $2.77 earnings per share. The company's revenue for the quarter was down 4.0% compared to the same quarter last year. Qualcomm has set its Q4 2026 guidance at 2.050-2.250 EPS.

A number of other research firms also recently weighed in on QCOM. Piper Sandler started coverage on Qualcomm in a report on Wednesday, September 9th. They set a "neutral" rating and a $190.00 target price for the company. Craig Hallum downgraded Qualcomm from a "buy" rating to a "hold" rating in a research report on Thursday, June 25th. UBS Group reduced their target price on Qualcomm from $190.00 to $170.00 and set a "neutral" rating on the stock in a report on Thursday, July 30th. Citigroup dropped their price target on Qualcomm from $198.00 to $175.00 and set a "neutral" rating for the company in a research note on Wednesday, July 29th. Finally, Freedom Capital upgraded shares of Qualcomm from a "hold" rating to a "strong-buy" rating in a research note on Friday, August 7th. Three investment analysts have rated the stock with a Strong Buy rating, twelve have given a Buy rating, twenty-one have given a Hold rating and three have assigned a Sell rating to the company's stock. According to MarketBeat.com, the company currently has a consensus rating of "Hold" and an average target price of $205.83.

Qualcomm Stock Performance

Shares of NASDAQ QCOM opened at $172.83 on Friday. The company has a debt-to-equity ratio of 0.46, a current ratio of 2.02 and a quick ratio of 1.28. The firm has a market cap of $184.55 billion, a price-to-earnings ratio of 20.00, a P/E/G ratio of 4.00 and a beta of 1.65. The stock's fifty day moving average price is $175.97 and its two-hundred day moving average price is $181.04. Qualcomm has a one year low of $121.99 and a one year high of $259.92.

Hedge Funds Weigh In On Qualcomm

Several institutional investors and hedge funds have recently added to or reduced their stakes in QCOM. BlackRock Inc. acquired a new position in shares of Qualcomm during the second quarter worth $17,583,115,000. State Street Corp grew its position in Qualcomm by 1.3% during the 2nd quarter. State Street Corp now owns 52,763,263 shares of the wireless technology company's stock worth $9,750,123,000 after acquiring an additional 671,537 shares during the last quarter. Van ECK Associates Corp grew its position in Qualcomm by 22.7% during the 2nd quarter. Van ECK Associates Corp now owns 17,202,619 shares of the wireless technology company's stock worth $3,178,872,000 after acquiring an additional 3,179,720 shares during the last quarter. Amundi increased its holdings in Qualcomm by 94.1% in the 2nd quarter. Amundi now owns 10,195,741 shares of the wireless technology company's stock worth $1,884,071,000 after purchasing an additional 4,942,908 shares in the last quarter. Finally, Bank of New York Mellon Corp acquired a new position in Qualcomm in the 2nd quarter worth about $1,523,930,000. Institutional investors own 74.35% of the company's stock.

Insiders Place Their Bets

In other news, EVP Heather S. Ace sold 3,200 shares of the stock in a transaction dated Monday, August 3rd. The shares were sold at an average price of $147.04, for a total value of $470,528.00. Following the completion of the transaction, the executive vice president owned 36,535 shares of the company's stock, valued at approximately $5,372,106.40. This represents a 8.05% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Cristiano R. Amon sold 10,000 shares of the firm's stock in a transaction that occurred on Friday, September 25th. The shares were sold at an average price of $200.00, for a total transaction of $2,000,000.00. Following the completion of the sale, the chief executive officer owned 177,568 shares in the company, valued at approximately $35,513,600. The trade was a 5.33% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 33,458 shares of company stock valued at $6,198,144 over the last ninety days. 0.05% of the stock is owned by insiders.

Qualcomm Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, December 17th. Investors of record on Thursday, December 3rd will be paid a $0.92 dividend. The ex-dividend date of this dividend is Thursday, December 3rd. This represents a $3.68 annualized dividend and a yield of 2.1%. Qualcomm's dividend payout ratio (DPR) is 42.59%.

About Qualcomm

Qualcomm Incorporated is a technology company that develops and commercializes wireless communications and semiconductor technologies. Through Qualcomm Technologies, Inc, the company designs integrated circuits, system software and related platforms used in smartphones, personal computers, automobiles, industrial equipment, consumer devices and other connected products. Its Snapdragon platforms support mobile computing, connectivity, artificial intelligence and multimedia applications, while its broader portfolio includes radio-frequency systems, networking and edge-computing technologies.

Qualcomm also operates a significant technology-licensing business through its Qualcomm Technology Licensing segment.

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