{"id":5320,"date":"2023-10-25T11:20:36","date_gmt":"2023-10-25T11:20:36","guid":{"rendered":"https:\/\/borrowaccelerated.com\/markets\/with-expectations-low-for-q4-will-qualcomm-spring-a-surprise\/"},"modified":"2023-10-25T11:20:37","modified_gmt":"2023-10-25T11:20:37","slug":"with-expectations-low-for-q4-will-qualcomm-spring-a-surprise","status":"publish","type":"post","link":"https:\/\/borrowaccelerated.com\/?p=5320","title":{"rendered":"With Expectations Low For Q4, Will Qualcomm Spring A Surprise?"},"content":{"rendered":"
\n

Mobile chipset major Qualcomm (NASDAQ: QCOM)<\/strong> is expected to publish its Q4 FY\u201923 results on November 1, reporting on a quarter that is likely to see the company\u2019s revenue contract meaningfully year-over-year, on account of a slowdown in smartphone and tablet sales. We expect revenue for the quarter to come in at about $8.04 billion, marking a decline of about 29% versus last year, and roughly in line with the consensus estimates. We project that earnings will come in at about $1.81 per share, slightly ahead of consensus estimates. See our analysis of Qualcomm Earnings Preview<\/strong> for a closer look at what to expect when the company reports earnings.<\/p>\n

Amid the current financial backdrop and a lackluster smartphone market, QCOM stock has faced a notable decline of 25% from levels of $150 in early January 2021 to around $110 now, vs. an increase of about 10% for the S&P 500 over this roughly 3-year period. Notably, QCOM stock has underperformed the broader market in each of the last three years. Returns for the stock were 20% in 2021, -40% in 2022, and -1% in 2023. In comparison, returns for the S&P 500 have been 27% in 2021, -19% in 2022, and 10% in 2023 – indicating that QCOM underperformed the S&P<\/strong> in 2021, 2022 and 2023. In fact, consistently beating the S&P 500<\/strong> – in good times and bad – has been difficult over recent years for individual stocks; for heavyweights in the Information Technology sector including AAPL, MSFT, and NVDA, and even for the megacap stars GOOG, TSLA, and AMZN. In contrast, the Trefis High Quality Portfolio, with a collection of 30 stocks, has outperformed the S&P 500 each year<\/strong> over the same period. Why is that?<\/strong> As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride as evident in HQ Portfolio performance metrics. Given the current uncertain macroeconomic environment with high oil prices and elevated interest rates, could QCOM face a similar situation as it did in 2021, 2022 and 2023 and underperform the S&P<\/strong> over the next 12 months – or will it see a recovery?<\/p>\n

The smartphone market has been cooling off of late as the tailwinds seen through the Covid-19 pandemic ease and also as economic uncertainty weighs on consumer spending. This is impacting Qualcomm\u2019s
\n QCOM
\n <\/fbs-ticker> CDMA Technologies segment, which supplies application processors, modems, and software for technologies for mobile devices, networking equipment, and consumer electronics. Over Q3 FY\u201923, chip sales to the handset space declined by about 24% to $5.25 billion. Qualcomm is also likely to see its technology licensing business cool off, with the company guiding sales of between $1.15 billion to $1.35 billion, down from $1.44 billion in the year-ago quarter. That said, there could be a couple of bright spots for the company. For example, the automotive business should continue to gain some traction as semiconductors play a much bigger role in the transportation industry as trends such as electrification and autonomous driving gather pace. Over Q3, Qualcomm\u2019s chip sales to the automotive space rose 13% year-over-year to $434 million.<\/p>\n

We remain positive on Qualcomm stock despite the current headwinds, with a $133 price estimate which is about 22% ahead of the current market price. See our analysis of Qualcomm Valuation<\/strong>: Expensive Or Cheap?<\/strong> for more details on what\u2019s driving our price estimate for Qualcomm. Qualcomm trades at just about 14x consensus 2023 earnings, which is a reasonable valuation. While this is partly due to the fact that revenues and earnings are projected to decline this year, the markets project that sales will recover in FY\u201924. Moreover, last quarter, Qualcomm announced it had extended an agreement with Apple
\n AAPL
\n <\/fbs-ticker> to supply modem chips to the iPhone maker until 2026. The development is very positive for QCOM, given that Apple was expected to use an internally developed 5G modem chipset starting in 2024.<\/p>\n

<\/fbs-ad><\/p>\n

Invest with Trefis <\/strong>Market Beating Portfolios<\/strong><\/p>\n

See all Trefis <\/strong>Price Estimates<\/strong><\/p>\n<\/div>\n

Read the full article here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Mobile chipset major Qualcomm (NASDAQ: QCOM) is expected to publish its Q4 FY\u201923 results on November 1, reporting on a quarter that…<\/p>\n","protected":false},"author":1,"featured_media":5321,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[25],"tags":[],"class_list":{"0":"post-5320","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-markets"},"yoast_head":"\nWith Expectations Low For Q4, Will Qualcomm Spring A Surprise? | Borrow Accelerated<\/title>\n<meta name=\"description\" content=\"Mobile chipset major Qualcomm (NASDAQ: QCOM) is expected to publish its Q4 FY\u201923 results on November 1, reporting on a quarter that is likely to see the\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/borrowaccelerated.com\/?p=5320\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"With Expectations Low For Q4, Will Qualcomm Spring A Surprise? | Borrow Accelerated\" \/>\n<meta property=\"og:description\" content=\"Mobile chipset major Qualcomm (NASDAQ: QCOM) is expected to publish its Q4 FY\u201923 results on November 1, reporting on a quarter that is likely to see the\" \/>\n<meta property=\"og:url\" content=\"https:\/\/borrowaccelerated.com\/?p=5320\" \/>\n<meta property=\"og:site_name\" content=\"Borrow Accelerated\" \/>\n<meta property=\"article:published_time\" content=\"2023-10-25T11:20:36+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-10-25T11:20:37+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/borrowaccelerated.com\/wp-content\/uploads\/2023\/10\/1698232837_0x0.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1286\" \/>\n\t<meta property=\"og:image:height\" content=\"900\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Press Room\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Press Room\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/borrowaccelerated.com\/?p=5320#article\",\"isPartOf\":{\"@id\":\"https:\/\/borrowaccelerated.com\/?p=5320\"},\"author\":{\"name\":\"Press Room\",\"@id\":\"https:\/\/borrowaccelerated.com\/#\/schema\/person\/2a1a980ef2ecf845cc4c153d880d7fc7\"},\"headline\":\"With Expectations Low For Q4, Will Qualcomm Spring A Surprise?\",\"datePublished\":\"2023-10-25T11:20:36+00:00\",\"dateModified\":\"2023-10-25T11:20:37+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/borrowaccelerated.com\/?p=5320\"},\"wordCount\":652,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/borrowaccelerated.com\/#organization\"},\"articleSection\":[\"Markets\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/borrowaccelerated.com\/?p=5320#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/borrowaccelerated.com\/?p=5320\",\"url\":\"https:\/\/borrowaccelerated.com\/?p=5320\",\"name\":\"With Expectations Low For Q4, Will Qualcomm Spring A Surprise? | Borrow Accelerated\",\"isPartOf\":{\"@id\":\"https:\/\/borrowaccelerated.com\/#website\"},\"datePublished\":\"2023-10-25T11:20:36+00:00\",\"dateModified\":\"2023-10-25T11:20:37+00:00\",\"description\":\"Mobile chipset major Qualcomm (NASDAQ: QCOM) is expected to publish its Q4 FY\u201923 results on November 1, reporting on a quarter that is likely to see the\",\"breadcrumb\":{\"@id\":\"https:\/\/borrowaccelerated.com\/?p=5320#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/borrowaccelerated.com\/?p=5320\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/borrowaccelerated.com\/?p=5320#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/borrowaccelerated.com\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"With Expectations Low For Q4, Will Qualcomm Spring A Surprise?\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/borrowaccelerated.com\/#website\",\"url\":\"https:\/\/borrowaccelerated.com\/\",\"name\":\"Fintech Advance\",\"description\":\"Latest Finance and Tech News and Updates\",\"publisher\":{\"@id\":\"https:\/\/borrowaccelerated.com\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/borrowaccelerated.com\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/borrowaccelerated.com\/#organization\",\"name\":\"Fintech Advance\",\"url\":\"https:\/\/borrowaccelerated.com\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/borrowaccelerated.com\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/borrowaccelerated.com\/wp-content\/uploads\/2023\/10\/tech-logo.png\",\"contentUrl\":\"https:\/\/borrowaccelerated.com\/wp-content\/uploads\/2023\/10\/tech-logo.png\",\"width\":409,\"height\":70,\"caption\":\"Fintech Advance\"},\"image\":{\"@id\":\"https:\/\/borrowaccelerated.com\/#\/schema\/logo\/image\/\"}},{\"@type\":\"Person\",\"@id\":\"https:\/\/borrowaccelerated.com\/#\/schema\/person\/2a1a980ef2ecf845cc4c153d880d7fc7\",\"name\":\"Press Room\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/borrowaccelerated.com\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/borrowaccelerated.com\/wp-content\/uploads\/2023\/10\/avatar_user_1_1697230663-96x96.png\",\"contentUrl\":\"https:\/\/borrowaccelerated.com\/wp-content\/uploads\/2023\/10\/avatar_user_1_1697230663-96x96.png\",\"caption\":\"Press Room\"},\"sameAs\":[\"https:\/\/borrowaccelerated.com\"],\"url\":\"https:\/\/borrowaccelerated.com\/?author=1\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"With Expectations Low For Q4, Will Qualcomm Spring A Surprise? | Borrow Accelerated","description":"Mobile chipset major Qualcomm (NASDAQ: QCOM) is expected to publish its Q4 FY\u201923 results on November 1, reporting on a quarter that is likely to see the","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/borrowaccelerated.com\/?p=5320","og_locale":"en_US","og_type":"article","og_title":"With Expectations Low For Q4, Will Qualcomm Spring A Surprise? | Borrow Accelerated","og_description":"Mobile chipset major Qualcomm (NASDAQ: QCOM) is expected to publish its Q4 FY\u201923 results on November 1, reporting on a quarter that is likely to see the","og_url":"https:\/\/borrowaccelerated.com\/?p=5320","og_site_name":"Borrow Accelerated","article_published_time":"2023-10-25T11:20:36+00:00","article_modified_time":"2023-10-25T11:20:37+00:00","og_image":[{"width":1286,"height":900,"url":"https:\/\/borrowaccelerated.com\/wp-content\/uploads\/2023\/10\/1698232837_0x0.jpg","type":"image\/jpeg"}],"author":"Press Room","twitter_card":"summary_large_image","twitter_misc":{"Written by":"Press Room","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/borrowaccelerated.com\/?p=5320#article","isPartOf":{"@id":"https:\/\/borrowaccelerated.com\/?p=5320"},"author":{"name":"Press Room","@id":"https:\/\/borrowaccelerated.com\/#\/schema\/person\/2a1a980ef2ecf845cc4c153d880d7fc7"},"headline":"With Expectations Low For Q4, Will Qualcomm Spring A Surprise?","datePublished":"2023-10-25T11:20:36+00:00","dateModified":"2023-10-25T11:20:37+00:00","mainEntityOfPage":{"@id":"https:\/\/borrowaccelerated.com\/?p=5320"},"wordCount":652,"commentCount":0,"publisher":{"@id":"https:\/\/borrowaccelerated.com\/#organization"},"articleSection":["Markets"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/borrowaccelerated.com\/?p=5320#respond"]}]},{"@type":"WebPage","@id":"https:\/\/borrowaccelerated.com\/?p=5320","url":"https:\/\/borrowaccelerated.com\/?p=5320","name":"With Expectations Low For Q4, Will Qualcomm Spring A Surprise? | Borrow Accelerated","isPartOf":{"@id":"https:\/\/borrowaccelerated.com\/#website"},"datePublished":"2023-10-25T11:20:36+00:00","dateModified":"2023-10-25T11:20:37+00:00","description":"Mobile chipset major Qualcomm (NASDAQ: QCOM) is expected to publish its Q4 FY\u201923 results on November 1, reporting on a quarter that is likely to see the","breadcrumb":{"@id":"https:\/\/borrowaccelerated.com\/?p=5320#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/borrowaccelerated.com\/?p=5320"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/borrowaccelerated.com\/?p=5320#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/borrowaccelerated.com\/"},{"@type":"ListItem","position":2,"name":"With Expectations Low For Q4, Will Qualcomm Spring A Surprise?"}]},{"@type":"WebSite","@id":"https:\/\/borrowaccelerated.com\/#website","url":"https:\/\/borrowaccelerated.com\/","name":"Fintech Advance","description":"Latest Finance and Tech News and Updates","publisher":{"@id":"https:\/\/borrowaccelerated.com\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/borrowaccelerated.com\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/borrowaccelerated.com\/#organization","name":"Fintech Advance","url":"https:\/\/borrowaccelerated.com\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/borrowaccelerated.com\/#\/schema\/logo\/image\/","url":"https:\/\/borrowaccelerated.com\/wp-content\/uploads\/2023\/10\/tech-logo.png","contentUrl":"https:\/\/borrowaccelerated.com\/wp-content\/uploads\/2023\/10\/tech-logo.png","width":409,"height":70,"caption":"Fintech Advance"},"image":{"@id":"https:\/\/borrowaccelerated.com\/#\/schema\/logo\/image\/"}},{"@type":"Person","@id":"https:\/\/borrowaccelerated.com\/#\/schema\/person\/2a1a980ef2ecf845cc4c153d880d7fc7","name":"Press Room","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/borrowaccelerated.com\/#\/schema\/person\/image\/","url":"https:\/\/borrowaccelerated.com\/wp-content\/uploads\/2023\/10\/avatar_user_1_1697230663-96x96.png","contentUrl":"https:\/\/borrowaccelerated.com\/wp-content\/uploads\/2023\/10\/avatar_user_1_1697230663-96x96.png","caption":"Press Room"},"sameAs":["https:\/\/borrowaccelerated.com"],"url":"https:\/\/borrowaccelerated.com\/?author=1"}]}},"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/borrowaccelerated.com\/index.php?rest_route=\/wp\/v2\/posts\/5320","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/borrowaccelerated.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/borrowaccelerated.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/borrowaccelerated.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/borrowaccelerated.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=5320"}],"version-history":[{"count":1,"href":"https:\/\/borrowaccelerated.com\/index.php?rest_route=\/wp\/v2\/posts\/5320\/revisions"}],"predecessor-version":[{"id":5322,"href":"https:\/\/borrowaccelerated.com\/index.php?rest_route=\/wp\/v2\/posts\/5320\/revisions\/5322"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/borrowaccelerated.com\/index.php?rest_route=\/wp\/v2\/media\/5321"}],"wp:attachment":[{"href":"https:\/\/borrowaccelerated.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=5320"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/borrowaccelerated.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=5320"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/borrowaccelerated.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=5320"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}