Qualcomm QCOM Shares Fall 8% Despite Meeting Earnings Expectations

Qualcomm shares fell 8.24% after its earnings report met quarterly expectations. The company's automotive revenue stream rose, but it forecasted powering only 70% of upcoming iPhone models, short of analyst projections. Analysts maintain a positive outlook with a significant potential upside. The upcoming analyst day event holds potential for additional insights.

Qualcomm Inc. (NASDAQ: QCOM) experienced a significant drop in its share price following the release of its quarterly earnings report. Despite meeting quarterly expectations, the company's shares fell by 8.24%, catching some analysts by surprise. The earnings report highlighted a notable increase in the company's automotive revenue stream, which rose by 59% year over year to $959 million [2]. However, the company forecasted that it would power only 70% of the upcoming iPhone models, a figure that fell short of analyst projections.

Analysts maintain a positive outlook on Qualcomm, with a significant potential upside. According to GuruFocus, the company's value in one year is anticipated to be $160.70, suggesting a potential upside of 14.94% from the current price point of $139.81 [1]. The average one-year price target from 31 analysts is $182.42, with projections ranging from $140.00 to $270.00 [1]. The consensus recommendation from 41 brokerage firms rates Qualcomm as "Outperform," indicating a balanced perspective on the company's market position [1].

The upcoming analyst day event is expected to provide additional strategic insights and potential catalysts for the company. Investors and analysts are eagerly awaiting further details that could influence Qualcomm's stock price. The company's strong performance in the automotive and IoT segments, along with its diversified business model, suggests a promising future for Qualcomm. However, the uncertainty surrounding its relationship with Apple and the impact of tariffs on its supply chain remain key factors to watch.

References:
[1] https://www.gurufocus.com/news/2827119/qualcomm-qcom-tumbles-on-earnings-report-and-outlook
[2] https://finance.yahoo.com/news/qualcomm-q2-earnings-beat-estimates-134000206.html