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
facebook twitter linkedin

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



Now is the time to join our thriving community of Event Traders who consistently profit from every earnings season. With this discounted subscription opportunity, you'll stay ahead of the curve and seize opportunities others miss. Do not let Q3 earnings season pass you by – subscribe now and supercharge your portfolio with expert insights that turn market reactions into profit-generating opportunities!! Don't waste another second... join us right now before the next trade targeting +200% is released!