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Qualcomm Stock Plummets Amidst Earnings Woes
15 Jul
Summary
- Qualcomm's stock fell 3.2% in the last session, lagging major indexes.
- The company anticipates a 20.22% decrease in EPS and a 6.46% drop in revenue.
- Qualcomm trades at a discount to its industry's average Forward P/E ratio.
Qualcomm's stock closed down 3.2% at $178.10 in its most recent trading session, a performance that lagged behind the S&P 500's modest gain. Over the past month, the chip manufacturer's shares have depreciated by 16.68%.
Anticipation is high for Qualcomm's upcoming earnings report. Analysts project an Earnings Per Share (EPS) of $2.21, representing a 20.22% decrease from the same quarter last year. Revenue forecasts indicate a similar trend, with an expected 6.46% drop compared to the previous year.
Full-year estimates suggest earnings of $10.77 per share and revenue of $42.67 billion, marking year-over-year declines of 10.47% and 3.32%, respectively. These projections reflect recent analyst estimate adjustments, which often correlate with short-term stock performance.
Currently, Qualcomm holds a Zacks Rank of #3 (Hold). Valuation metrics show a Forward P/E ratio of 17.09, significantly lower than the industry average of 45.9, indicating Qualcomm is trading at a discount. Its PEG ratio stands at 4.05, while the industry average is 1.75.
