{"id":41494,"date":"2023-10-13T06:51:36","date_gmt":"2023-10-13T06:51:36","guid":{"rendered":"https:\/?p=41494"},"modified":"2023-10-13T06:51:36","modified_gmt":"2023-10-13T06:51:36","slug":"qcom-stock-forecast-reducing-workforce-due-to-weak-demand","status":"publish","type":"post","link":"https:\/\/www.stocktargetadvisor.com\/blog\/qcom-stock-forecast-reducing-workforce-due-to-weak-demand\/","title":{"rendered":"QCOM Stock Forecast: Reducing Workforce due to Weak Demand"},"content":{"rendered":"

Global chipmaker Qualcomm Corporation (QCOM:NSD<\/a>) is set to reduce its workforce by 1,258 employees. This strategic move comes as Qualcomm faces market challenges, primarily linked to the persistently sluggish Chinese market and macroeconomic headwinds. The layoffs will be effective from around mid-December, marking a pivotal transition for the company. This article will highlight the effect of Workforce downsizing on the QCOM stock forecast.<\/p>\n

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Impact ofMarket Challenges:<\/h2>\n

The dwindling demand, stemming from the protracted slowdown in the Chinese market and broader macroeconomic factors, has significantly impacted Qualcomm’s handset business. The company reported a 25% year-over-year decline in handset revenue during the third quarter of Fiscal 2023. Furthermore, the third-quarter results indicate a 23% decline in overall sales and a 27% drop in adjusted earnings per share.<\/p>\n

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Cost Optimization Strategies:<\/h2>\n

Qualcomm is diligently working on reducing its operating expenses. During the third-quarter conference call, Qualcomm’s Chief Financial Officer, Akash Palkhiwala, outlined cost-saving initiatives that position the company to exceed its goal of a 5% reduction in expenses. He further disclosed the company’s intent to introduce additional cost-saving measures in the first half of Fiscal 2024.<\/p>\n

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QCOM Stock Forecast:<\/h2>\n

Amid these obstacles, Qualcomm will release its fourth-quarter earnings on November 1. However, Wall Street analysts anticipate a significant decline, with expected earnings per share (EPS) of $1.91, compared to the prior-year quarter’s $3.13 EPS.<\/p>\n

Considering the challenging landscape, it’s crucial to assess the outlook for Qualcomm Corporation. A glimpse at the QCOM stock forecast reveals promising insights:<\/p>\n

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1. Average Target Price & Rating:<\/h3>\n

According to forecasts from 20 financial analysts, the average target price is USD 133.93 within the next 12 months. The consensus among analysts leans strongly towards a “Strong Buy” recommendation. Analysts at Evercore ISI<\/a> lowered its target from USD 140 to USD 135.<\/p>\n

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QCOM Ratings<\/a> by Stock Target Advisor<\/p>\n<\/div>\n