As the earnings season continues to move, Nomura analysts are gearing up in anticipation for QUALCOMM, Inc. (NASDAQ:QCOM) and Twitter Inc (NYSE:TWTR) earnings releases. Let’s take a look and see what the analysts have to say about QCOM and TWTR.
Nomura analyst Romit Shah reiterated a Neutral rating on shares of Qualcomm, with a price target of $55, as the company is set to release its fiscal 1Q16 earnings on Wednesday, January 27 after the market closes.
Shah observed, “For March, we expect revenues/EPS (ex.ESO) of $5.22b (-6.7% q/q)/$0.82 vs. cons. $5.68b (-0.2% q/q)/$1.02. In the past 12 months, CY16 revenue estimates have declined 19% to $23.59b. Given our below consensus expectations for March, we believe estimates have continued downside risk. ”
“We believe a clean quarter and solid guide is a necessary first step to getting more constructive on Qualcomm; forward estimates have been declining for more than a year. However, smartphone demand appears weak and the Street is forecasting better than seasonal growth for the March period,” the analyst continued.
According to TipRanks.com, a site that tracks and ranks analysts on their predictions, analyst Romit Shah has a yearly average return of 6.8% and a 52.4% success rate. Shah has a -1.4% average return when recommending QCOM, and is ranked #343 out of 3593 analysts.
Given the departures of 5 key Twitter executives, Nomura analyst Anthony Diclemente slashed his price target on Twitter stock from $30 to $19, while reiterating a Neutral rating.
Diclemente commented, “We are lowering our 2016/2017 estimates on the heels of these departures as we believe it indicates current turnaround efforts may be taking more time to bear fruit than expected. If so, this implies slower user growth, which pressures revenue, but also the possibility that Twitter’s products may require renewed investment, which leads us to modestly downwardly revise our margin assumptions. As such, we lower our Target Price to $19 as we moderate our assumptions around TWTR’s long-term growth trajectory and operating leverage potential.”
Analyst Anthony Diclemente has a yearly average return of 6.7% and a 55% success rate, according to TipRanks.com. Diclemente has a 2% average return when recommending TWTR, and is ranked #325 out of 3593 analysts.
Out of the 44 analysts polled by TipRanks, 18 analysts are bullish on Twitter, 13 are neutral, and 3 are bearish. With a return potential of 100%, the stock’s consensus target price stands at $34.27.