Qualcomm's Q3 Earnings Preview:Earnings Under Pressure, but a Potential Turning Point for Handset Bu

Value_investing

Qualcomm is set to release its Q3 earnings report after the market closes this Wednesday. According to analyst forecasts, Qualcomm’s revenue in Q3 is expected to reach $9.627 billion, representing a 7.1% year-over-year decline.

Adjusted earnings per share are projected to reach $2.215, down 20% year over year.

In terms of valuation, Qualcomm’s current price-to-earnings ratio stands at 18.46x, which is relatively low compared with its historical levels over the past decade.

Qualcomm’s revenue is primarily generated from three major business segments: CDMA technologies (QCT), including Handsets, IoT, and Automotive; Technology Licensing (QTL); and Strategic Initiatives (QSI). Among these, CDMA Technologies (QCT) is expected to remain the largest revenue contributor in the third quarter.

According to analysts' forecasts, Qualcomm’s results could outperform expectations despite a weak smartphone market, driven by early orders from Chinese handset manufacturers and stronger iPhone 18 modem demand. However, the quarter is expected to mark a trough of its handset business cycle.

$Qualcomm(QCOM)$

Qualcomm Q3 Financial Results

Qualcomm reported strong financial results for Q3 with an EPS of USD 2.43, surpassing expectations. The revenue stood at USD 10,365 million, slightly higher than the IBES estimate of USD 10,352 million. Additionally, the pretax profit reached USD 2,952 million, and the net income was USD 2,666 million.

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According to analyst forecasts, Qualcomm’s revenue in Q3 is expected to reach $9.627 billion, representing a 7.1% year-over-year decline.</p>\n<p style=\"text-align: left;\">Adjusted earnings per share are projected to reach $2.215, down 20% year over year.</p>\n<p style=\"text-align: left;\">In terms of valuation, Qualcomm’s current price-to-earnings ratio stands at 18.46x, which is relatively low compared with its historical levels over the past decade.</p>\n<p class=\"t-img-caption\"><img data-align=\"center\" src=\"https://community-static.tradeup.com/news/3dfc64de7066046674dd41febb1975a2\" tg-width=\"-1\" tg-height=\"-1\"><span></span></p>\n<p class=\"t-img-caption\"><img data-align=\"center\" src=\"https://community-static.tradeup.com/news/f095705c5d9de9586e428a4ae95e7b79\" tg-width=\"-1\" tg-height=\"-1\"><span></span></p>\n<p style=\"text-align: left;\">Qualcomm’s revenue is primarily generated from three major business segments: CDMA technologies (QCT), including Handsets, IoT, and Automotive; Technology Licensing (QTL); and Strategic Initiatives (QSI). 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According to analyst forecasts, Qualcomm’s revenue in Q3 is expected to reach $9.627 billion, representing a 7.1% year-over-year decline.</p>\n<p style=\"text-align: left;\">Adjusted earnings per share are projected to reach $2.215, down 20% year over year.</p>\n<p style=\"text-align: left;\">In terms of valuation, Qualcomm’s current price-to-earnings ratio stands at 18.46x, which is relatively low compared with its historical levels over the past decade.</p>\n<p class=\"t-img-caption\"><img data-align=\"center\" src=\"https://community-static.tradeup.com/news/3dfc64de7066046674dd41febb1975a2\" tg-width=\"-1\" tg-height=\"-1\"><span></span></p>\n<p class=\"t-img-caption\"><img data-align=\"center\" src=\"https://community-static.tradeup.com/news/f095705c5d9de9586e428a4ae95e7b79\" tg-width=\"-1\" tg-height=\"-1\"><span></span></p>\n<p style=\"text-align: left;\">Qualcomm’s revenue is primarily generated from three major business segments: CDMA technologies (QCT), including Handsets, IoT, and Automotive; Technology Licensing (QTL); and Strategic Initiatives (QSI). Among these, CDMA Technologies (QCT) is expected to remain the largest revenue contributor in the third quarter.</p>\n<p class=\"t-img-caption\"><img data-align=\"center\" src=\"https://community-static.tradeup.com/news/dcefb494b1cb0721210deef77f3966f5\" tg-width=\"1056\" tg-height=\"509\"><span></span></p>\n<p style=\"text-align: left;\">According to analysts' forecasts, Qualcomm’s results could outperform expectations despite a weak smartphone market, driven by early orders from Chinese handset manufacturers and stronger iPhone 18 modem demand. 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Qualcomm’s revenue is primarily generated from three major business segments: CDMA technologies (QCT), including Handsets, IoT, and Automotive; Technology Licensing (QTL); and Strategic Initiatives (QSI). Among these, CDMA Technologies (QCT) is expected to remain the largest revenue contributor in the third quarter. According to analysts' forecasts, Qualcomm’s results could outperform expectations despite a weak smartphone market, driven by early orders from Chinese handset manufacturers and stronger iPhone 18 modem demand. However, the quarter is expected to mark a trough of its handset business cycle. $Qualcomm(QCOM)$","highlighted":1,"essential":1,"paper":2,"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"link":"https://ttm.financial/post/590812144362600","repostId":0,"isVote":1,"tweetType":1,"viewCount":521,"commentLimit":10,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"symbols":["QCOM"],"verified":2,"subType":0,"readableState":1,"langContent":"EN","currentLanguage":"EN","warmUpFlag":false,"orderFlag":false,"shareable":true,"causeOfNotShareable":"","featuresForAnalytics":[],"commentAndTweetFlag":false,"andRepostAutoSelectedFlag":false,"upFlag":false,"length":949,"optionInvolvedFlag":false,"subscribersOnly":false,"subscribersOnlyAccessible":false,"xxTargetLangEnum":"ORIG"},"commentList":[],"isCommentEnd":true,"isTiger":false,"isWeiXinMini":false,"url":"/m/post/590812144362600"}