Back to top

Analyst Blog

We expect Qualcomm Inc. (QCOM - Analyst Report), the world’s leading mobile chipset developer, to beat expectations when it reports its first-quarter 2013 results after the market closes on Jul 24, 2013.

Why a Likely Positive Surprise?

Our proven model shows that QCOM is likely to beat earnings because it has the right combination of two key ingredients.

Positive Zacks ESP: Expected Surprise Prediction or ESP (Read: Zacks Earnings ESP: A Better Method), which represents the difference between the Most Accurate estimate and the Zacks Consensus Estimate, is +1.10%. This is a meaningful and leading indicator of a likely positive earnings surprise.

Zacks Rank #3 (Hold): QCOM currently has a Zacks Rank #3. Note that the stocks with Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) have a significantly higher chance of beating the earnings.  

The combination of QCOM’s Zacks Rank #3 (Hold) and +1.10% ESP makes us confident of a positive earnings beat on Jul 24, 2013.

What is Driving the Better-Than-Expected Earnings?

Higher adoption of smartphones and tablets coupled with increased deployment of 3G/4GLTE networks may drive mobile chipset sale, going forward. as most smartphone manufacturing companies are continuously using Qualcomm’s Snapdragon processors. Moreover, the launch of industry hit new Snapdragon quad core processors, which support better graphics and enhance battery life, will further act as catalysts for growth,   moving ahead.   

Other Stocks to Consider

Other companies you may consider on the basis of our model, which have the right combination of elements to post an earnings beat this quarter are as follows:

InterDigital, Inc. (IDCC - Snapshot Report) has an Earnings ESP of +27.78% and carries a Zacks Rank #3 (Hold).

Leap Wireless International Inc. has an Earnings ESP of +3.00% and carries a Zacks Rank #3 (Hold).

Apple Inc. (AAPL - Analyst Report) has an Earnings ESP of +2.19% and carries a Zacks Rank #3 (Hold).

Please login to or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research


Are you a new Zacks Member or a visitor to

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
ERBA DIAGNO… ERB 3.00 +3.09%
SANCHEZ ENE… SN 34.18 +2.67%
THE PANTRY… PTRY 21.02 +2.09%
INTEL CP INTC 35.15 +1.88%
PIPER JAFFR… PJC 54.54 +1.70%