Earnings Preview: Qualcomm

Qualcomm (QCOM) is expected to report Q4 earnings after the market close on Wednesday, November 4, with a conference call scheduled for 5:30 pm ET.

Guidance

The consensus estimate is 52c for EPS and $2.72B for revenue, according to First Call. Guidance for Q4 provided by management on its last earnings call is for revenue of $2.55B-$2.75B.

Analyst Views

BMO Capital Markets expects an in-line September quarter, with pro forma EPS a penny above consensus of 52c. But all eyes will be on guidance. The firm thinks the slow uptake in China 3G and some channel correction will be offset by better-than-expected mobile broadband shipments and a strong performance in India and China 2G. Looking forward: After seeing Q3 units from the major OEMs, BMO now believes management will guide FY10 EPS to $2.20-$2.30, which is below current consensus of $2.32. Management has beaten FY guidance by an average of 15% over the last four years, so being below consensus should not be a surprise. BMO expects management to lower its CY09 handset guidance by 10M-20M from a mid-point of 565M, mostly on the WCDMA side. The firm expects CY10 to range from 660M-690M. BMO is looking for flat guidance for Mobile Station Modem, or MSM, shipments in the December quarter. BMO Capital Market's FY10 EPS estimate of $2.40 is above consensus of $2.32.