Nomura Securities Maintains a 'Neutral' on Qualcomm (QCOM); Review of 2Q Earnings; Results Were Better Than Our Expectations
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Price: $165.79 +0.61%
Rating Summary:
25 Buy, 33 Hold, 5 Sell
Rating Trend:
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Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
25 Buy, 33 Hold, 5 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Nomura Securities maintains a 'Neutral' on Qualcomm (NASDAQ: QCOM).
Nomura analyst, Romit Shah, said, "Revenue of $3.9B (+16% QoQ) and EPS of $0.86 exceeded our estimates of $3.6B/$0.76, driven by strength in the licensing business (QTL). We believe that Qualcomm lost some momentum this quarter. Although the company raised full year revenue guidance, almost half of the revenue gains are due to recently settled licensee disputes. In addition, a sequential decline in chipset shipment guidance and a 900bps decline in QCT op margin are weaker than we expected. As such, with the stock at 18x CY11 EPS, we struggle to find compelling reasons to buy the stock at these levels."
For more ratings news on Qualcomm click here and for the rating history of Qualcomm click here.
Shares of Qualcomm closed at $55.27 yesterday.
Nomura analyst, Romit Shah, said, "Revenue of $3.9B (+16% QoQ) and EPS of $0.86 exceeded our estimates of $3.6B/$0.76, driven by strength in the licensing business (QTL). We believe that Qualcomm lost some momentum this quarter. Although the company raised full year revenue guidance, almost half of the revenue gains are due to recently settled licensee disputes. In addition, a sequential decline in chipset shipment guidance and a 900bps decline in QCT op margin are weaker than we expected. As such, with the stock at 18x CY11 EPS, we struggle to find compelling reasons to buy the stock at these levels."
For more ratings news on Qualcomm click here and for the rating history of Qualcomm click here.
Shares of Qualcomm closed at $55.27 yesterday.
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