(Yahoo Finance) – On Wednesday, February 03, Qualcomm (NASDAQ:QCOM) will release its latest earnings report. Decipher the announcement with Benzinga’s help.
Net Income, Earnings, And Earnings Per Share
Earnings and especially earnings per share (EPS) are useful measures of a company’s profitability. Total earnings, which is also referred to as net income, equals total revenue minus total expenses. EPS equals to net income divided by the number of shares outstanding.
Earnings And Revenue
Based on management’s projections, Qualcomm analysts model for earnings of $2.1 per share on sales of $8.26 billion. Qualcomm earnings in the same period a year ago was $0.99 per share. Quarterly sales came in at $5.06 billion.
Why Analyst Estimates And Earnings Surprises Are Important
Analysts who cover this company will publish forward-looking estimates of its revenue and EPS each quarter. Averaging together every EPS and revenue prediction that each analyst makes about a company in a quarter yields the “consensus estimates.” A company posting earnings or revenue above or below the consensus estimate is known as an “earnings surprise” and may move the stock by a considerable margin.
If the company were to report earnings in line when it publishes results Wednesday, quarterly profit would be up 112.12%. Sales would be up 63.34% from the same quarter last year. Here is how the company’s EPS has stacked up against analyst estimates in the past:
|Quarter||Q4 2020||Q3 2020||Q2 2020||Q1 2020|
|Revenue Estimate||5.94 B||4.81 B||5.02 B||4.83 B|
|Revenue Actual||6.50 B||4.89 B||5.21 B||5.06 B|
Shares of Qualcomm were trading at $161.58 as of February 01. Over the last 52-week period, shares are up 79.25%. Given that these returns are generally positive, long-term shareholders should be satisfied going into this earnings release.
Do not be surprised to see the stock move on comments made during its conference call. Qualcomm is scheduled to hold the call at 16:45:00 ET and can be accessed here.
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