QCOM - Embedded Expectations Analysis - 2021 04 26
QUALCOMM Incorporated (QCOM:USA) currently trades above historical averages relative to UAFRS-based (Uniform) earnings, with a 22.0x Uniform P/E. At these levels, markets have bullish expectations for the firm, but management may have concerns about potential inventory channel build-up, revenue growth, and semiconductor supply chain headwindsSpecifically, management may lack confidence in their ability to sustain revenue growth, particularly in IoT solutions, and capitalize on the expansion of Qualcomm CDMA Technologies' addressable market. Moreover, they may be downplaying concerns about potential channel inventory build, semiconductor industry supply chain headwinds, and revenue seasonality. Furthermore, management may lack confidence in their ability to continue investing in 5G-related technology, provide algorithmic advancements and software tools for developers and OEMs, and take advantage of Huawei's strong design activity. In addition, they may be concerned about the pace of the recovery of the handset market and the sustainability of semiconductor demand. Finally, management may lack confidence in their ability to manage legal costs, accelerate market share gains, and maintain a strong industry position
Qualcomm is engaged in the development and commercialization of foundational technologies for the wireless industry. The company's segments include: Qualcomm CDMA Technologies, which is a developer and supplier of integrated circuits and system software based on code division multiple access, orthogonal frequency division multiple access and other technologies; Qualcomm Technology Licensing, which grants licenses or otherwise provides rights to use portions of its intellectual property portfolio, which, among other rights, include certain patent rights essential to and/or useful in the manufacture and sale of certain wireless products; and Qualcomm Strategic Initiatives, which makes investments.
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