The Country Caller previews the chip maker’s third quarter earnings, due to be released after markets close today
Chip making giant QUALCOMM, Inc. (NASDAQ:QCOM) is about to release its financial results for the third quarter of fiscal year 2016 in after-market hours today. On one hand, a number of analysts on the Street have raised their third quarter estimates recently, hinting at earnings beat. On the other hand, the company is still struggling due to the impact of saturated smartphone markets, which has led two of its major clients, Apple and Samsung, to report sales declines for the March quarter. The Country Caller previews the $82 billion company’s third quarter earnings.
Third Quarter Estimates
According to the consensus data mentioned on FactSet, Qualcomm would report earnings per share of 98 cents for the third quarter. Luckily for the company, this figure is overshadowed by the $1.03 EPS estimate mentioned on earningswhispers.com, which suggests an earnings beat is on the cards this time.
The San Diego-based company’s sales, however, might not be as bright as its earnings. Estimize has a mean estimate of $5.56 billion, $20 million lower than the consensus estimate on Thomson Reuters.
For its second quarter, Qualcomm posted earnings of 78 cents per share, up 24% year-on-year. In contrast, its sales plunged 18% YoY to $5.6 billion. Based on these numbers, the consensus has 25.64% YoY EPS growth and 0.35% YoY sales decline factored into its estimates for 3QFY16.
Qualcomm’s year-ago earnings were quite dull. Its EPS for 3QFY15 plunged 31% YoY to $0.99, while its sales for that quarter fell 14% YoY to $5.8 billion.
The company has guided revenues to fall within a $5.1-6 billion range. Its Non-GAAP EPS guidance range stands at $0.90-1.00. Qualcomm has also guided for MSM chip shipments to fall within a 175-195 million range, declining 13-22% year-over-year. The company also expects total reported device sales to fall within a $52-60 billion range.
Year-to-date through Tuesday, Qualcomm shares have climbed up 12.21%. They traded 0.15% higher at $55.22 as at 9:43 AM EDT today.