Qualcomm Earnings Preview: Poised To Outperform Despite Chip Excess Concerns, Analyst Predicts

San Diego, California-based semiconductor and wireless telecommunications maker Qualcomm Inc QCOM is set to issue third-quarter fiscal 2023 earnings on Wednesday after the closing bell, here's what investors need to know.

Earnings, By The numbers: Investors expect Qualcomm to issue earnings of $1.81 per share on revenues of $8.51 billion. Last year in the same period, the company issued earnings of $2.96 per share on revenues of $10.93 billion, according to Benzinga Pro.

Expectations — in comparison to last year — remain relatively low amid recent headwinds in the global smartphone market, which saw a 13% dip in shipments in the first quarter, according to Canalys.

However, JPMorgan analysts are projecting a brighter outlook, citing early signs of a recovery in the smartphone sector, resulting in the expectation of stronger performance.

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The QCOM Analyst: Samik Chatterjee noted “very early signs” of recovery in the global smartphone market, citing the performance of Qualcomm's peers, MediaTek Inc MDTKF, and smartphone supplier Amphenol Corporation APH.

Chatterjee maintained his "favorable view" of Qualcomm, despite concerns of chip excess and a potential decrease in chip prices that could hurt gross margins, adding that the company’s performance is set to outperform investor expectations. 

JPMorgan analysts expect the company to issue earnings of $1.88 per share, which would come ahead of the $1.81 Street estimate, on revenues of $8.6 billion, which would beat the consensus estimate of $8.5 billion.

Moving ahead, JPMorgan anticipates that Qualcomm's fourth quarter print will continue the strong trend, with projected earnings of $2.04 per share on revenues of $8.9 billion.

QCOM Price action: Shares of Qualcomm are trading 0.63% lower to $131.45 at the time of publication on Tuesday, according to data from Benzinga Pro.

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