Deutsche Bank provided its outlook on QUALCOMM Incorporated (NASDAQ:QCOM) ahead of the upcoming Q1 results announcement.

The analysts expect an in-line Q1 report, but investors will rightly be much more focused on when the revenue/EPS bottom will occur (Q1 vs Q2) and if management is willing to maintain its prior stance on an H2/23 recovery.

In general, while macro/seasonal/China covid related headwinds will clearly persist in Q2, the analysts believe a number of tailwinds should also arise. When combined with the incentive for management to be conservative, the analysts see slight sequential downside risk as being more likely than upside in Q2 but expect investors to largely be more focused on the timing/magnitude of a rebound in Q3 and further. Beyond smartphones, analysts expect the company to remain relatively resilient vs. peers in its diversified growth segments of Auto and IoT.