Why Qualcomm (QCOM) Could Beat Earnings Estimates Again

Core Viewpoint - Qualcomm is a strong candidate for investors looking for stocks that consistently beat earnings estimates, with a notable average surprise of 8.54% over the past two quarters [1][5]. Earnings Performance - In the most recent quarter, Qualcomm reported earnings of $2.83 per share, slightly below the expected $2.85, resulting in a surprise of 0.71% [2]. - For the previous quarter, Qualcomm exceeded expectations significantly, reporting $3.41 per share against a consensus estimate of $2.93, leading to a surprise of 16.38% [2]. Earnings Estimates and Predictions - Recent estimates for Qualcomm have been trending upward, with a positive Earnings ESP of +0.60%, indicating increased analyst optimism regarding its near-term earnings potential [5][8]. - The combination of a positive Earnings ESP and a Zacks Rank of 3 (Hold) suggests a high likelihood of another earnings beat, with historical data showing that such combinations lead to positive surprises nearly 70% of the time [6][8]. Earnings ESP Explanation - The Earnings ESP metric compares the Most Accurate Estimate to the Zacks Consensus Estimate, with the Most Accurate Estimate reflecting the latest analyst revisions, which may be more accurate [7]. - A negative Earnings ESP can reduce predictive power but does not necessarily indicate an earnings miss [9]. Importance of Earnings ESP - Companies often beat consensus EPS estimates, but this is not the sole reason for share price increases; stability can also occur even with missed estimates [10].