Categories AlphaGraphs, Earnings, Technology

Qualcomm swings to profit in Q1, beats estimates

Qualcomm (QCOM) swung to a profit in the first quarter of fiscal 2019 from a loss last year, which was negatively impacted by its dispute with Apple (AAPL) and its contract manufacturers as well as a charge related to tax act. The bottom line exceeded analysts’ expectations while the top line missed consensus estimates. The chipmaker guided first-quarter earnings and revenue in line with the Street’s view.

Net income was $1.1 billion or $0.87 per share compared to a loss of $6 billion or $4.05 per share in the previous year quarter. Non-GAAP earnings increased 25% to $1.20 per share. Revenue plunged 20% to $4.8 billion.

Looking ahead into the second quarter, the company expects revenue in the range of $4.4 billion to $5.2 billion and earnings in the range of $0.40 to $0.50 per share. Adjusted earnings are anticipated to be in the range of $0.65 to $0.75 per share.

Qualcomm first quarter 2019 earnings infographic
Qualcomm Q1 2019 Earnings Infographic

The company predicts MSM chip shipments in the range of 150 million to 170 million for the second quarter. Qualcomm Technology Licensing (QTL) revenues are anticipated to be in the range of $1 billion to $1.1 billion, which is down 10% to 18% year-over-year.

The forecast excludes QTL revenues for royalties due on sales of Apple and other products by Apple’s contract manufacturers, as Qualcomm expects the actions taken by these companies will continue until the respective disputes are resolved. The outlook also includes $150 million of QTL revenues from Huawei under an interim agreement while negotiations continue.

For the first quarter, revenues from Qualcomm CDMA Technologies (QCT), which account for the lion’s share of total revenues, fell 20% year-over-year, and Qualcomm Technology Licensing (QTL) segment generated a 20% plunge in revenues in the quarter.

Also Read:  Altria Group (MO) Q2 earnings beat; reestablishes FY20 EPS outlook

Also read: Qualcomm Q1 2019 earnings conference call transcript

During the first quarter, the company returned $1.8 billion to stockholders, including $750 million or $0.62 per share of cash dividends paid and $1 billion through repurchases of 17 million shares of common stock. On January 14, the company announced a quarterly cash dividend of $0.62 per share, payable on March 28, 2019, to stockholders of record on March 7, 2019.

“We continue to execute on our strategic objectives, including driving the global transition to 5G, protecting the established value of our technology and inventions and expanding into new industries and product categories,” Qualcomm’s CEO Steve Mollenkopf said.

Shares of Qualcomm ended Wednesday’s regular session up 1.56% at $50.17 on the Nasdaq. Following the earnings release, the stock inched up over 1% in the after-market session.

 

We’re on Apple News! Follow us to receive the latest stock market, earnings, and financial news at your fingertips

Most Popular

Novavax (NVAX) tops Q2 2020 bottom line targets, misses revenue views

Novavax (NASDAQ: NVAX) reported a loss of $17.5 million or $0.30 per share for the second quarter of 2020. Revenue jumped to $35.54 million in Q2 from $3.36 million in

Tilray Q2 loss widens despite revenue growth; results miss

https://www.youtube.com/watch?v=KqNZ-_X4F8k&t=2s Cannabis company Tilray, Inc. (NASDAQ: TLRY) Monday reported a wider net loss for the second quarter of 2020, despite a marked increase in revenues. Revenues of the Canada-based company

Infographic: Duke Energy Q2 2020 Earnings Results

Duke Energy (NYSE: DUK) reported second-quarter financial results before the market opened on Monday.  The energy holding company surpassed earnings expectations by 5 cents per share during the quarter. DUK

Top