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Qualcomm (NASDAQ:QCOM) is set to release its 2nd quarter 2013 earnings on Tuesday, April 24th at 10:45 pm ET. Below I have provided an update of the quarter as well as an overview of earnings expectations.

Profile and Estimates

Qualcomm has a market cap of $109.34 billion and currently trades for $63.99 per share. Shares are up 3.26% YTD and trade 21.96% above their 52-week low of $52.47. Analysts have a mean target price of $75.40 and a median price target of $77.00 on the shares. Thirty four analysts have an average 2nd quarter earnings per share estimate of $1.16 on estimated revenues of $6.07 billion. Qualcomm has only missed earnings expectations once in the last four quarters.

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Fundamentals and Highlights (Sources cited below article)

Positives

  • P/E of 19.1 is below the industry averages 62.1.
  • Net income growth over the last three years has averaged 56.6% which is above the industry averages 48.2%.
  • Operating margins of 30.4%, net margins of 32.3%, ROA of 16.0 and ROE of 20.7 all are above the industry averages 9.9%, 7.3%, 5.5 and 10.1 respectively.
  • 1.57% dividend yield.
  • ROIC has grown in each of the last three years and came in at 20.2% last year.
  • Baseband chip provider for Apple's iPhone, 4S and 5 devices.
  • Receives royalties from carriers using or upgrading to CDMA networks (includes 3G).

Negatives

  • P/B of 3.1 and P/S of 5.4 are both above the industry averages 2.1 and 1.6 respectively.
  • Faces stiff price competition and will need to stay ahead of competitors to fight off declining margins.

Take Away

Qualcomm is definitely a force to be reckoned with and shares have deservingly rewarded investors who spotted its dominant chip position before they took off. Sell-side analysts still see shares above their current price and if Qualcomm's report next week shows continued success, investors looking to add to or initiate a new position will be pressed for time.

Sources

In addition to the links above, ratios and financial data was sourced from Morningstar.com, which you can find here and here.

Other company data was sourced from the annual report that can be accessed here.

Source: Can Qualcomm Overcome The Weak Earnings Trend? Highlights And Earnings Expectations