Q2 Preview: QUALCOMM (QCOM) Beating Estimates Should Be a "Snap"-dragon

QUALCOMM (Nasdaq: QCOM) is trading higher today ahead of the Company's second-quarter earnings report, expected out after the market closes. Shares are up about 2.7 percent this afternoon.

QUALCOMM is expected to report EPS of $0.80 and revs of $3.62 billion. Last quarter, the San Diego, CA-based communications and chip giant reported EPS of $0.82 on revs of $3.35 billion, both topping estimates. Looking back at Q210, QUALCOMM posted EPS of $0.59 and revs of $2.66 billion. versus consensus EPS of $0.57 and revs of $2.63 billion.

Shares gained 9.6 percent through the quarter, to $54.83 at the end of March. The stock is just about flat since the end of the quarter, and finished 2010 about 7.5 percent higher.

Data from Bloomberg has 34 analysts with a Buy on QUALCOMM, 8 with a hold, and none suggesting to Sell. The analyst price target average is $63, with a high of $80 and low of $51. Shares have traded in a range of $59.84 - $31.63 over the last 52-weeks.

Summary

• Deutsche Bank sees EPS of $0.79 and revs of $3.51 billion. Deutsche notes that, 'latest checks indicate that most major semiconductor companies have no direct component shortages, and that most of these companies are comfortable that their suppliers and their suppliers are not seeing shortages as a result of the ongoing situation in Japan. That being said, we are starting to hear commentary from some vendors that some components are becoming harder to obtain."
  
  Continuing, Deutsche says, "we are increasingly confident that Qualcomm has won WCDMA designs at RIM, displacing Marvell and moving beyond their current role in CDMA and World Phone product lines. While we are cautious about RIM's long-term prospects around their floundering OS strategy, we see near-term unit volumes coming from emerging markets."
  
  
• Kaufman Bros. is looking for EPS of $0.83 and revs of $3.63 billion. On the estimates, Kaufman said, "the company is seeing negative seasonality in its QCT (Qualcomm Chipset Technologies) segment offset by positive seasonality in QTL (Qualcomm Technology Licensing) plus the one-time $250M benefit from the settlement of a licensing dispute."
  
  
• D.A. Davidson (DAD) is modeling for EPS of $0.79 and sales of $3.679 billion. DAD comments, "With over 150 Snapdragon devices in development, including 20+ tablets, we believe QCOM remains in a leadership position for the mobile chip market. Despite losing some early designs to Tegra 2, QCOM has 60 design wins for its new 1.2ghz dual-core MSM8660." Headwinds come from ASP pressures in the QCT segment.

QUALCOMM is expected to release their Q111 earnings on Wednesday, April 20, 2011, at approximately 7:00am EST. Stay tuned to StreetInsider.com's EPS Insider section to see our analysis of the highly-anticipated quarterly results withi0 n seconds of their release.

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• ​Trump said he was unaware of his earnings from crypto
• Waste stocks ride AI and healthcare boom as CLH surges 27%
• RBC Capital Downgrades Bucher Industries AG (BUCN:SW) (BCHHF) to Sector Perform