Qualcomm (QCOM) has beaten Wall Street earnings estimates in ten straight quarters and I don’t expect the QCOM stock streak to end Wednesday. - From InvestorPlace
For the quarter that ended June, Wall Street expects Qualcomm to report 81 cents per share on revenue of the $5.26 billion, translating to year-over-year declines of 30% and 12.8%, respectively.
The fact that profits for the quarter and full year are projected to decline has been the biggest factor impacting QCOM stock, which by climbing just 1.7% in twelve months, has underperformed both the Dow Jones Industrial Average (up 16.5%) and the S&P 500 (up 14%).
Qualcomm in April announced that it had been informed by Apple that the iPhone maker would withhold payments to its contract manufacturers for the royalties those contract manufacturers owe.
Revenue for the quarter could also be under pressure, as the company last month reduced its guidance forecast by $500 million to a new range of $4.8 billion to $5.6 billion, which pressured QCOM stock by almost 3%.
But that said, the company’s massive patent portfolio, the bulk of which are in fast-growing industries such as mobile and 4G, 5G and next-generation wireless technologies, remain a huge advantage for Qualcomm.