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Qualcomm, Inc. (QCOM) CEO Cristiano Amon on Q2 2022 Results - Earnings Call Transcript

Apr. 27, 2022 8:58 PM ETQUALCOMM Incorporated (QCOM) Stock12 Comments
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Qualcomm, Inc. (NASDAQ:QCOM) Q2 2022 Earnings Conference Call April 27, 2022 4:45 PM ET

Company Participants

Mauricio Lopez-Hodoyan - VP, Investor Relations

Cristiano Amon - President & CEO

Akash Palkhiwala - CFO

Conference Call Participants

Matthew Ramsay - Cowen and Company

Thomas Walkley - Canaccord Genuity

Samik Chatterjee - JPMorgan Chase & Co.

Stacy Rasgon - Sanford C. Bernstein & Co.

Tal Liani - Bank of America Merrill Lynch

Roderick Hall - Goldman Sachs Group

Ross Seymore - Deutsche Bank

Joseph Moore - Morgan Stanley

Christopher Caso - Raymond James & Associates

Blayne Curtis - Barclays Bank

Operator

Ladies and gentlemen, thank you for standing by. Welcome to the Qualcomm Second Quarter Fiscal 2022 Earnings Conference Call. [Operator Instructions]. As a reminder, this conference is being recorded, April 27, 2022. The playback number for today's call is 877-660-6853. International callers, please dial 201-612-7415. The playback reservation number is 13728288.

I would now like to turn the call over to Mauricio Lopez-Hodoyan, Vice President of Investor Relations. Mr. Lopez-Hodoyan, please go ahead.

Mauricio Lopez-Hodoyan

Thank you, and good afternoon, everyone. Today's call will include prepared remarks by Cristiano Amon and Akash Palkhiwala. In addition, Alex Rogers will join the question-and-answer session. You can access our earnings release and a slide presentation that accompany this call on our Investor Relations website. In addition, this call is being webcast on qualcomm.com, and a replay will be available on our website later today.

During the call today, we will use non-GAAP financial measures as defined in Regulation G, and you can find the related reconciliations to GAAP on our website. We will also make forward-looking statements, including projections and estimates of future events, business or industry trends or business or financial results. Actual events or results could differ materially from those projected in our forward-looking statements. Please refer to our SEC

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Comments (12)

t
Funny, that the analysts are disappointed that QCOM beat their ill-understood logic handily !!
A
Qualcomm is now where MSFT was in 2016 ... as I said many times before amon is to qualcomm what nadella was to MSFT. Coming from the non core business and transforming the company.
d
@Amstragram I think this comparison is not very fair to Steve Mollenkopf. He was the one (though together with Amon as the President and the CEO of QCT) who laid down the foundation for Qualcomm's today success (plus he was quite busy fighting off barbarians at the gate). Amon is continuing the legacy and he has a real chance to create his own.
GDPPP profile picture
I tend to agree with what a lot of SA readers have mentioned below. To me, this stock is the best bang for the buck in the semi space at the moment. Kinda hard to believe that analysts are forecasting EPS growth of only 5.17% per year which I think is very shortsighted and under-estimating the management pedigree (feel like they're just extrapolating big up years in 2013-14 followed by down years from 2015-19).

Their investments in auto, AI/ML and with Nuvia acquisition for custom CPUs, I have a feeling QCOM will outperform every major fabless semi over the next 5 years (including big dog NVDA).
k
@GDPPP true as TAM will grow 7x if you believe mgmt and they seem to be ahead of schedule. Too many fear Apple going away. But get this, QCOM just stole Samsung business from Samsung. Yes.That is correct. Hard to do, but that shows the quality.

So if QCOM TAM only grows 5x, they probably take a larger %.

Furthermore M&A will increase to grow business and likely expand TAM.

This is a multi-year investment.
J
Don't look now but Cristiano Amon may be the new Satya Nadella.
A
What a massive achievement, the incompetent analysts just can’t accept how wrong and out of focus they are. Imagine if analysts were at a MSFT earning call and only focus and challenge the windows business. Once the uneducated investors wake up to the real Qualcomm story unfolding right before their eyes wide shut, this stock will finally rock as it should.
d
Jeez, how many times do Qualcomm guys have to say "Look, it's not about phones any more", but these analysts are just stuck on mobile and refuse to look an inch ahead of their own noses. It's frustrating.
k
@dima_b it was all about mobile. I don’t think they could believe the growth for the yr of 50%. But it is added content as well as Samsung and others. Multiple prong reason.

I know the top end of guide was $2.95, but I expect $3.05. They even hinted that margins would be higher. It is what they do. Under promise , over deliver.

We all see it but analyst are blind. Analyst are slow to change perspective.

This is a 5 yr investment. If/when analysts truly get on board like they do for NVDA then stock price can catch up to FV. Unfortunately a recession could slowdown this potential as analyst are not going to get bullish in mass at the moment.

QCOM may earn 12.75 this yr. I had them at $12 and a 20x PE given growth so $240 FV. So could be approaching $260.

I know it popped today, but after the excitement I expect WS to continue to push it down. So I am holding my shares and my cash. There will be a day I put my cash to work and will earn outsized gains. But that time is not now with rate hikes just beginning, Covid still effing up stuff, supply chain issues. Fed will slow the economy. It will. Patience is key right now.
Nospheritu profile picture
@dima_b Hi, so, I just want to circle back around to handsets... could you say something negative to justify our sell rating? We see softness in cheap low tier phones that you've said multiple times don't affect you, could you say that they do? If not, how about low tier handsets in Europe?

Got it thanks, ok, can you tell us that the slowdown will come through in September then? No? Ok, so December then? No...ok. Thanks, I'll get back in the que so that the next analyst can ask the same questions with slightly different wording.
d
@Nospheritu lol, hilarious
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