Qualcomm Inc. (NASDAQ: QCOM) reported second fiscal quarter 2014 results after markets closed on Wednesday. The chipmaker posted adjusted diluted earnings per share (EPS) of $1.31 and revenues of $6.37 billion. In the second quarter of 2013, Qualcomm reported EPS of $1.17 on revenues of $6.12 billion. Thomson Reuters had estimates for EPS of $1.22 and $6.48 billion in revenue.
Adjustments to earnings included a $665 million gain on discontinued operations and a $444 million impairment charge. The impact on EPS worked out to a negative $0.05.
In its outlook for its third fiscal quarter, Qualcomm guide revenues in a range of $6.2 to $6.8 billion compared with $6.24 billion actual in the third quarter a year ago. Adjusted EPS is forecast in a range of $1.15 to $1.25, well above the $1.03 posted last year but perhaps a little cautious compared with a consensus estimate of $1.25. Chip sales are forecast to rise 15% to 24%. Third-quarter sales of all third-party devices using Qualcomm chips is forecast at $56 to $62, a range of -1% to +10% compared with last year’s total of about $56.5 billion.
For the full fiscal year ending in September, Qualcomm maintained its revenue forecast of $26 to $27.5 billion, and raised its adjusted EPS range from $5.00 to $5.20 to a new range of $5.05 to $5.25.
The company’s CEO said:
Looking forward, we are pleased to be raising our earnings per share guidance for the fiscal year. We continue to see increasing demand for our industry-leading chipsets and strong growth in calendar year 2014 of 3G/4G smartphones around the world.
The miss on revenues will cost the shares during Thursday’s trading session. Year-over-year revenue grew 4% but fell by a similar amount sequentially. That’s not something investors like to see.
Qualcomm’s stock is trading down about 4% at $77.45 after closing at $80.71. The 52-week range is $59.02 to $81.66. Thomson Reuters had a consensus analyst price target of around $83.40 before today’s report.
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