Categories AlphaGraphs, Earnings, Technology

Qualcomm shares rise after earnings beat estimates

Qualcomm shares rose around 2% in the aftermarket after it reported better-than-expected earnings results in the second quarter of 2018. Revenue for the quarter witnessed a modest growth of 5% to $5.3 billion.

Meanwhile, earnings took a hit during the quarter due to its legal tussle with Apple (AAPL) over the alleged unfair licensing practice. GAAP EPS fell 52% to $0.24 per share, while on an adjusted basis, earnings came in at $0.80 per share, down 40% year-over-basis.

The company did not record QTL revenues during the quarter, for royalties due on the sale of Apple’s or the other licensee’s products.

 

Qualcomm Q2 2018 Earnings

 

 

Qualcomm, which escaped a hostile takeover bid by Broadcom (AVGO), has been going through a rough phase for the past few years. Apart from its ongoing battle with Apple, Qualcomm was crushed by the trade war between China and the US.

Qualcomm may have a lot to lose in the brewing trade war as it is banned from selling its semiconductors to ZTE Corp. — a Chinese telecom equipment maker. This ban will have a severe impact the company’s revenue.

Due to these political struggles, the company’s deal with NXP Semiconductors (NXPI) is getting delayed. Qualcomm is said to refile an application with the Chinese regulators seeking clearance for its proposed $44 billion takeover of NXP Semiconductors. The two companies earlier pushed the closure date to July of this year.

Meanwhile, Qualcomm is ramping up its operations to boost its earnings. It rolled out a $1 billion cost-cutting plan early this year and is considering layoffs to boost long-term growth.

The company forecasts revenue for the full year to be around $4.8 billion to $5.6 billion, with EPS of $0.35 to $0.50.

Most Popular

Should investors worry about Micron’s (MU) weak Q4 results and guidance?

The semiconductor industry is a rapidly growing business segment that currently thrives on the digital transformation wave. The demand for memory chips and other semiconductor products increased over the years,

What has Bed Bath & Beyond (BBBY) outlined for this fiscal year?

Shares of Bed Bath & Beyond (NASDAQ: BBBY) were up on Friday, a day after the company delivered disappointing results for the second quarter of 2022. The company reported a

NKE Earnings: Highlights of Nike’s Q1 2023 results

Nike, Inc. (NYSE: NKE) has reported a decrease in net profit for the first quarter of 2023, despite a modest increase in revenues. The company's stock suffered a big loss

Tags

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top