Qualcomm Inc (NASDAQ: QCOM)
Chipmaker firm Qualcomm posted higher than anticipated fiscal 2018 fourth-quarter profit and revenue after markets closed on Wednesday.
The chipmaker attributed the solid results to higher demand for its products by smartphone manufacturers in China and a better licensing model for its wireless technology that has attracted more customers.
Qualcomm also issued a rosy profit forecast for the current quarter, though its revenue guidance fell short of Wall Street estimates. Shares of the San Diego based firm dropped 2.5% in postmarket trade following the news.
Qualcomm appears to be feeling the consequences of ending its business relations with Apple Inc, which was one of its biggest customers. Both companies are currently engaged in a long-running dispute after the iPhone maker sued Qualcomm for illegal business practices.
QCOM Earnings & Outlook
Qualcomm posted a loss of $493 million, or $0.35 per share, during the quarter, down from a profit of $168 million, or $0.11 per share, in the same period last year. Adjusted for share-based compensation and other items, earnings came to $0.90 per share.
Net sales declined to $5.80 billion from $5.91 billion in the same three months a year earlier. Analysts on average had expected the company to post adjusted earnings of $0.83 per share on revenue of $5.52 billion, according to figures compiled by Refinitiv.
Looking ahead, Qualcomm expects fiscal 2019 first-quarter adjusted earnings to be in the range of $1.05 to $1.15 per, compared with analysts’ estimates of $0.94 per share. The firm also expects revenue of between $4.5 billion to $5.3 billion for the quarter, while analysts project $5.59 billion.
Qualcomm CEO Comments
“We delivered a strong quarter, with Non-GAAP earnings per share above the high end of our prior expectations, on greater than expected chipset demand in QCT and lower operating expenses,” commented Steve Mollenkopf, CEO of Qualcomm Incorporated. “We are executing well on our strategic objectives, including driving the commercialization of 5G globally in 2019 and returning significant capital to our stockholders.”
Qualcomm Company Profile
QUALCOMM, Inc. engages in the development, design, and provision of digital telecommunications products and services. It operates through the following segments: Qualcomm CDMA Technologies (QCT), Qualcomm Technology Licensing (QTL), and Qualcomm Strategic Initiatives (QSI).
The QCT segment develops and supplies integrated circuits and system software based on technologies for the use in voice and data communications, networking, application processing, multimedia, and global positioning system products.
The QTL segment grants licenses and provides rights to use portions of the firm’s intellectual property portfolio. The QSI segment focuses on opening new or expanding opportunities for its technologies and supporting the design and introduction of new products and services for voice and data communications.
The company was founded by Franklin P. Antonio, Adelia A. Coffman, Andrew Cohen, Klein Gilhousen, Irwin Mark Jacobs, Andrew J. Viterbi, and Harvey P. White in July 1985 and is headquartered in San Diego, CA. – CNN Money