Qualcomm Earnings Beat Still Disappoints Investors
Qualcomm Inc. (NASDAQ: QCOM) reported fiscal second-quarter financial results after the markets closed on Wednesday. The company had $1.04 in earnings per share (EPS) on $5.5 billion in revenue compared to consensus estimates from Thomson Reuters that called for $0.96…
Qualcomm Inc. (NASDAQ: QCOM) reported fiscal second-quarter financial results after the markets closed on Wednesday. The company had $1.04 in earnings per share (EPS) on $5.5 billion in revenue compared to consensus estimates from Thomson Reuters that called for $0.96 in EPS on $5.34 billion in revenue. The same period from last year had $1.40 in EPS on $6.89 billion in revenue.
Earlier this month, Qualcomm announced a cash dividend of $0.53 per share payable on June 22, to stockholders of record on June 1. The dividend represents a 10% increase over the prior quarterly dividend.
In terms of fiscal third-quarter guidance, the company expects to have $0.99 in EPS on $5.8 billion in revenue. There are consensus estimates that are calling for $1.02 in EPS on $5.56 billion in revenue.
On the books, cash, cash equivalents and marketable securities totaled $30 billion at the end of the quarter, compared to $29.6 billion a year ago.
Steve Mollenkopf, CEO of Qualcomm, commented:
Our fiscal second quarter results were driven by stronger than expected performance across our chipset and licensing businesses. We are pleased with our continued progress in the licensing business, including the recent conclusion of new license agreements in China and the resolution of our dispute with LG Electronics. We are continuing to build momentum into the second half of our fiscal 2016 with traction for our Snapdragon processors in the premium and high tiers and strong execution of our strategic realignment plan.
Shares of Qualcomm closed Wednesday up 0.5% at $52.09, with a consensus analyst price target of $56.36 and a 52-week trading range of $42.24 to $71.32. Following the release of the earnings report the stock was initially down 1.2% at $51.45 in the after-hours trading session.
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Chris Lange is a financial and geopolitical writer with more than a decade of experience covering a myriad of topics. He has published thousands of articles for 24/7 Wall St., with past coverage focused heavily on stocks, IPOs, healthcare, defense, global affairs, and technology.
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