Qualcomm, the maker of mobile processors and 5G wireless chipsets, may report muted earnings results after Thursday's market close.
Wall Street's consensus estimate calls for Qualcomm (ticker: QCOM) to report $9.6 billion in revenue for the quarter ended Dec. 31, with adjusted earnings per share of $2.36. Meanwhile, analysts are expecting EPS of $2.29 and revenue of $9.56 billion for the current quarter.
Global smartphone demand has been deteriorating. On Tuesday, research firm Canalys said fourth-quarter worldwide shipments for mobile phones fell 18% year-over-year due to difficult economy conditions. As a larger supplier for the smartphone market, it could be difficult for Qualcomm to post strong results.
Earlier this week, Bernstein analyst Stacy Rasgon reiterated his Outperform rating on Qualcomm shares, citing its low valuation. He also reaffirmed his $140 price target for the stock.
"A weak market and [inventory] channel flush is impacting near-term trajectory, but the shares remain very inexpensive and set-up into 2024 looks good as things normalize and Apple business hangs around," he wrote.
Qualcomm shares have declined about 26% over the past 12 months, while the iShares Semiconductor ETF (SOXX) -- which tracks the performance of the ICE Semiconductor Index -- is off 15%.
