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Can Qualcomm's Earnings Live Up to Analyst Expectations?

The security has added 20% in the last month

Digital Content Manager
Jul 26, 2022 at 12:03 PM
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Qualcomm, Inc. (NASDAQ:QCOM) will enter the earnings confessional after the close on Wednesday, July 27. Analysts are expecting the semiconductor business to report profits of $2.87 per share for its second quarter. Ahead of the event, QCOM is down 1.6% to trade at $150.83. 

The security has a history of impressive post-earnings moves, and saw positive returns during six of its last eight reports. This includes a 12.7% jump in November 2021 and 2020. Regardless of direction, the stock has averaged a next-day 9.3% swing during this time period. This time around, options traders are pricing in a slightly bigger 10.5% move. 

Speaking of, short-term options players have rarely been more call-biased ahead of the earnings event. This is per the stock's Schaeffer's put/call open interest ratio (SOIR) of 0.46, which sits higher than just 2% of readings from the past year. 

Analysts have also taken a bullish stance. Of the 16 in coverage, all but five call the chip name a "buy" or better. Plus, the 12-month consensus price target of $196.45 is a 29.6% premium to current levels. 

The equity has staged an impressive rebound off its late-June annual lows, though this rally lost some steam at the 180-day moving average. In the past month, QCOM has added 20.9%. However, in 2022, the security has shed 17.3%. 

qcom chart july 26

 

 
 

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