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.
Fundamentals and Highlights (Sources cited below article)
- 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).
- 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.
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.
Other company data was sourced from the annual report that can be accessed here.