Earnings Preview for 11/4

Market Monster
6 min readNov 4, 2020

Qualcomm Q4 2020 earnings preview

$Qualcomm Inc(QCOM.US)$ is scheduled to announce its Q4 2020 earnings result on Wednesday, November 4.

Qualcomm Incorporated is a multinational corporation headquartered in San Diego, and incorporated in Delaware. It creates an intellectual property, semiconductors, software, and services related to wireless technology.

  • According to Bloomberg, analysts are forecasting earnings per share of $1.195 (53.2% YoY), on revenue of $5.943 billion (23.7% YoY).
  • In the past 2 years, Qualcomm has beaten EPS estimates 100% of the time and revenue estimates 75% of the time.
Source: Bloomberg
  • 24 of 33 analysts have Buy ratings on Qualcomm, while 7 analysts have a Hold or the equivalent rating. And 2 analysts rate Qualcomm as a sell. The average analyst price target is $134.71 implying a 7.4% upside.

Qualcomm benefits from 5G adoption that started in China several quarters ago and is extending to the U.S. The company’s 5G modems and radio-frequency content enrich chip sales amid wider adoption. With all major handset makers licensed to its IP, litigation is now a low risk, as is the ongoing FTC case. Through fiscal 2022, 5G phone sales are a key catalyst. Qualcomm’s view of near the high end of 175–225 million 5G phone units shipped in calendar 2020 and more than 450 million in 2021 may be topped. Autos and IoT help non-handset sales.

Our scenario analysis sees $4.7 billion in QCT segment sales, $1.3 billion in QTL, and 64 million 5G smartphones sold, driving 154 million mobile station modem chips shipped at $30.50 in fiscal 4Q. Our $6 billion in total sales is in-line and $1.20 in EPS slightly higher than consensus.

-Anand Srinivasan

Qualcomm will hold the conference call at 4:45 PM EDT Wednesday, November 4.

Match Q3 2020 earnings preview

$MATCH GROUP, INC.(MTCH.US)$ is scheduled to announce its Q3 2020 earnings result on Wednesday, November 4.

Match Group, through its portfolio companies, is a leading provider of dating products available globally.

  • According to Bloomberg, analysts are forecasting earnings per share of $0.463 (-61.9% YoY), on revenue of $605.875 million (-51.4% YoY).

Source: Bloomberg

  • 10 of 22 analysts have Buy ratings on Match, while 11 analysts have a Hold or the equivalent rating. And 1 analyst rates Match as a sell. The average analyst price target is $125.35 implying a 3.1% upside.

Match’s sales may rise by low- to midteens in 3Q amid 10% subscriber gains and up to mid-single digits in average revenue per user (ARPU), in our view. Subscriber and ARPU gains are predicated on sustained momentum at Tinder, about 60% of sales. Subscription offerings, a-la-carte pricing and new video-chat functionality may portend increased subscriber additions and spending in the next few quarters, in our view. Tinder app downloads averaged 16% growth in 3Q vs. 7% last year, according to Sensor Tower, affirming our view that virtual-dating platforms are gaining traction amid stay-at-home trends.

Match faces near-term pressure on Ebitda margins amid higher marketing spending for new user acquisitions, while in-app purchase fees continue to weigh on gross margin. Still, Ebitda margins could stay above 35% in 2H, in our view.

-Matthew Martino & Jitendra Waral

Match will hold the conference call at 8:30 AM EDT Thursday, November 5.

Zynga Q3 2020 earnings preview

$Zynga Inc(ZNGA.US)$ is scheduled to announce its Q3 2020 earnings result on Wednesday, November 4.

Zynga is a global leader in interactive entertainment with a mission to connect the world through games.

  • According to Bloomberg, analysts are forecasting earnings per share of $0.091 (89.2% YoY), on revenue of $626.375 million (58.7% YoY).
  • In the past 2 years, Zynga has beaten EPS estimates 75% of the time and revenue estimates 87.5% of the time.
Source: Bloomberg
  • 15 of 20 analysts have Buy ratings on Zynga, while 3 analysts have a Hold or the equivalent rating. And 2 analysts rate Zynga as a sell. The average analyst price target is $11.52 implying a 21.1% upside.

Zynga should keep executing at a high level throughout 2020 and into 2021, in our view, as its foundational Forever Franchises continue to post steady growth, new releases contribute to revenue and acquisitions at good valuations further bolster the top line. The purchase of Peak Games — its largest ever acquisition — provides it two more Forever Franchises immediately, expanding its daily active user base by about 50% and providing a meaningful sales and Ebitda uplift. Zynga still has ample cash, capacity to take on debt and can continue to issue equity for acquisitions to continue expanding its development capabilities and portfolio of Forever Franchises.

Zynga’s mobile net sales fell 13.6% sequentially in 3Q but were up 11.5% year-on-year pro forma for acquisitions, according to Sensor Tower.

-Matthew Kanterman

Zynga will hold the conference call at 5:00 PM EDT Wednesday, November 4.

Qorvo Q4 2020 earnings preview

$Qorvo Inc(QRVO.US)$ is scheduled to announce its Q4 2020 earnings result on Wednesday, November 4.

Qorvo, a diversified market leader in RF solutions, provides the industry’s broadest portfolio of critical enabling technologies with expertise in mobile devices, complex infrastructure and global aerospace and defense applications.

  • According to Bloomberg, analysts are forecasting earnings per share of $2.215 (39.8% YoY), on revenue of $1.006 billion (24.7% YoY).
  • In the past 2 years, Qorvo has beaten EPS estimates 100% of the time and revenue estimates 100% of the time.
Source: Bloomberg
  • 17 of 25 analysts have Buy ratings on Qorvo, while 8 analysts have a Hold or the equivalent rating. The average analyst price target is $144.15 implying a 12.2% upside.

The 5G smartphone ramp-up and the iPhone 12 launch are near-term sales catalysts for Qorvo that could help back stronger fiscal 2Q results and increases to its outlook, in our view. Qorvo is among the leading beneficiaries from a combination of chip-content gains and better 5G smartphone volume, and is a leading driver to sales growth in the next several quarters. China 5G smartphone demand was healthy in the September quarter, which could complement orders by Apple.

Qorvo raised its 2Q sales outlook by 8% in September, yet expectations still trail the midpoint of its guidance, though the company’s results have room for expansion. Apple’s October-November launch may have skewed orders to 3Q, and healthy orders are an encouraging sign that Qorvo’s outlook that could surpass Bloomberg consensus.

-Woo Jin Ho

Qorvo will hold the conference call at 5:00 PM EDT Wednesday, November 4.

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