QUALCOMM (QCOM) Stock Explodes On Strong Earnings


QUALCOMM is having an incredible time in after hours trading today, and for good reason. The company released its earnings report for the third quarter, blowing away expectations. Today, we’ll talk about what we saw from earnings, how the stock is reacting to the news, and what we can expect to see from QCOM moving forward. So, let’s get right to it…

QCOM Reports Impressive Q3 Results

As mentioned above, QUALCOMM is having an incredible run in after hours trading today after announcing results for the third quarter. Not only did the company beat expectations with regard to earnings, it blew away revenue expectations. Here’s what we saw from the report:

  • Earnings Per Share – When it comes to earnings per share, QCOM did incredibly well. During the third quarter, analysts expected that the company would generate earnings in the amount of $0.97 per share. However, the company reported earnings for the quarter in the amount of $1.16 per share; blowing away analyst expectations.
  • Revenue – QCOM didn’t just impress investors with regard to earnings, revenue came in above expectations as well. During the quarter, analysts expected that the company would generate $5.8 billion in revenue. However, the company actually reported revenue in the amount of $6 billion. This represents a 4% year over year gain.
  • Guidance – QUALCOMM also offered compelling guidance. The company said that for the current quarter it expects to generate between $5.4 and $6.2 billion in revenue. This should leave earnings per share for the quarter between $1.05 and $1.08. This comes in on the high end of analyst expectations. For the current quarter, analysts are expecting that the company will generate $1.08 per share in earnings on $5.7 billion in revenue.

Following the release of the incredibly strong earnings report, QCOM CEO, Steve Mollenkopf had this to say in a statement…

We are executing well on our strategic priorities, and we remain confident that our focused investments in 5G and other advanced technologies will create a strong foundation for long-term earnings growth…”

How The Stock Is Reacting To The News

As investors, one of the first things that we learn is that the news moves the market. When positive news is released with regard to a publicly traded company, we tend to see gains in the value of the stock associated with the news. In this particular case, the news surrounding QCOM was overwhelmingly positive. As a result, we’re seeing a strong reaction in the market. In early after-hours trading, the stock is up $3.78 per share or 6.77% for a total price of $59.60 per share.

What We Can Expect To See Moving Forward

Moving forward, I have an overwhelmingly bullish opinion of what we can expect to see from QUALCOMM. The reality is that the company has a proven history of creating great products and coming up with incredible sales plans. With heavy efforts on 5G, I’m excited to see what is coming in the long run. However, there’s also good news in the short run. With the company performing so well under incredible market pressures, investor sentiment is likely to remain bullish. As a result, I’m expecting to see gains in QCOM in both the short and long run.

What Do You Think?

Where do you think QCOM is headed moving forward? Join the discussion in the comments below!