Despite the massive stock market rally last year, a number of stocks significantly underperformed the broader markets and Qualcomm (NASDAQ: QCOM) was among those market laggards. Over the last few months, however, the stock is seeing some momentum build up. Being a leader in the smartphone application processor market, it approximately has a commanding 54% market share (by revenues), followed by Apple (NASDAQ: AAPL) and Media Tek with 16% and 10% market shares respectively. With increasing demand for advanced mobile devices – including smartphones-that can support high speed Internet and computing tasks, the company clearly controls a major portion of an important and fast-growing market of current times. Below I discuss a few reasons why Qualcomm should return respectable gains in near term.
Continuously growing revenues
As illustrated in the chart below, Qualcomm has been continuously growing its revenues over the last five year, even though its quarterly earnings have languished in $1-$2 billion range since late 2010. Nevertheless, it still fares better than some of its industry peers, those barely reporting any earnings at all.
In the fiscal-first quarter of 2014, the company reported record revenues of $6.62 billion, up 10% from the same period a year ago. The growth was mainly attributed to stronger-than-expected device sales and Mobile Station Modem (MSM) chip shipments during the quarter. The result piped analysts' consensus estimate for sales by 0.65% but significantly surpassed the earnings estimate by 14.21%, according to data compiled by Reuters (source) . As a matter fact, it has a rather strong history of meeting/surpassing estimates for both revenues and earnings of late, which speaks volumes of its business tran...
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...rly dividend by 20% to $1.68 per share that yields at 2.20%. With this hike, the five-year average dividend growth rate stands tall at 20.24% per year.
Second, it extended its share repurchase program by $5 billion to a total of $7.8 billion. This is in addition to the $2 billion the company spent last year in stock-buybacks. Both these measures should add value to the stock.
Bottom line: With continuously growing revenues and increasing popularity of its 64-bit chipsets and LTE technology, Qualcomm will be able to sustain its growth in future. There is no doubt that the company has its heart in the right place and is moving in the right direction that would eventually see growth in its bottom-line too. Of course, the recent dividend increase and stock buyback announcement only adds to its appeal and shows the management is committed to rewarding its shareholders.
...s are doing well and over the many years have gone up. The company has not lawsuits currently pending which is good. The company as a whole seems to be growing even when the market is down.
The stock price is currently 103.31, down from a recent high of 121.50. The P/E ratio is declining at 28 and beta at .67, which is expected to grow closer to 1.0. A recent earnings surprise last December yielded a 15% difference from the lower expectations and the latest earnings reports late last month also surprised investors. Estimates for the 2000 fiscal year are being raised by a large majority of analyst who believe that earnings per share will increase and the stock price will reach close to 150.
Last year, the company recorded revenues of C$45,394 million, an increase of 6.53% over FY2014.The operating profit of the company was C$1,601 million in FY2015, a increase of 142% compared with FY2014, year in which the company had a decrease of 49.9% on the operating profit, and the net profit of the company was C$623 million in FY2015, an increase the total of FY2014, C$53 million (Loblaw, 2016). Loblaw’s stock price (L.TO) ended the year priced at C$65.34, 6.5% higher than price at the begining of the year C$61.35 (Yahoo Finances,
Cisco is one of Americas greatest corporate success stories. Since shipping it’s first product in 1986, The company has grown into a global market leader that holds No.1 or No.2 market share in almost every market section in which it participates. Cisco went public in 1990 on the nasdaq stock market with annual revenues at $69 million in that year. But now their revenues are at $12.2 billion in fiscal 1999. Their revenues in the last four quarters are shown in the figure below.
Within the last decade Apple has become one of the largest growing companies in the world and the largest valued company in the United States. According to a recent article in The Guardian, a global financial news website, “Apple set a record by becoming the first company to be valued at over $700bn (£446bn).” (Fletcher, N. 2014) This comes as no surprise to the average computer aficionado and shareholder as Apple has been making a name for itself since its inception. From its earliest Macintosh models to today’s iPhones, Apple has been a trailblazer for software, technology and revolutionizing the way we communicate on a Macro level. Their dedication to innovation, quality and service has made them
In conclusion, with Cisco and Qualcomm joining on a project it will show other companies that they are going to come out with something better than anyone else does. Something that has not been created before, something unique with the two minds of American companies, they will come out with something that is great.
...rs, setting a good trend for the corporation. They also have a very low debt-to-equity ratio, indicating that they have enough equity to easily pay off any funds acquired from creditors. As a creditor I would feel safe in lending them funds for any future projects or endeavors.
After the announcement of higher- than-expected profit on 31st July 2015, the share price went from 727.5p to
is yet to reach its maximum potential. Truly a unique entity in its accomplishments and organization, apple through the conviction and leadership of Steve Jobs its founder and then CEO; have pioneered the revolution of mobile technology. When it comes to strength, apple Inc, has a great marketing team with great marketing and advertisement capabilities, strong brand awareness, a strong and extensive distribution channel, and most of all a vertical integration and the most obvious which is customer loyalty. With the acquisition of valuable companies such as Beats, WhatsApp, mobile payment systems with the IPhone 6, wearable gadgets like the IWatch, apple uses these opportunities to satisfy its loyal
In Wayne Williams web exclusive article on BetaNews, he talks about how good Samsung’s smartphones was but soon switches to an iPhone because the phones were acting up. This counter argument is show...
Investors in the stock market judge earnings growth against two figures: the average industry earnings and the estimated earnings for the company. If analysts predict earnings to be above the industry average, a company’s stock price will usually rise. If companies report earnings higher than predicted, stock price will typically rise even more.
Ways to fix the current problem are to not pay dividends; this will save $150,000 but still leave them at a shortage of $181,500. Payment of dividends would be a nice gesture to stockholders that have stood by them, but may be at too great of cost. Stockholders do not want to see the stock ultimately become valueless. They would rat...
It can be seen that with this pace, Apple would be able to retain its competitive
withstanding a large recession, and commanding high market share. In the last five years, the company’s
A recent survey from a research investment firm called Canaccord Genuity concludes that more recent Galaxy phones sold more combined units in the U.S than Apple’s iPhone did in May of 2013. Respectively Android and IOS operating systems represented 91.1% of all smartphone shipments during the 4QT of 2012. In 2013, Samsung's 4QT profit rose to 76%; a record high for “strength of smartphone sales”. Comparably Apple’s stock fell by more than 5% after the launch of their new iPhone 5s and 5c.