Qualcomm (QCOM) Tops Earnings Estimates, Posts In-Range Guidance

Qualcomm Incorporated ( (NASDAQ:QCOM) ) just released its latest quarterly financial results, posting adjusted earnings of $0.80 per share and revenues of $5.23 billion.

Currently, QCOM is a Zacks Rank #3 (Hold), but that could change based on today’s results. Shares of the company have lost about 11% over the past month and were basically flat during regular trading hours today.

The stock is currently up 2.5% to $51.00 per share in after-hours trading shortly after its earnings report was released.

Qualcomm:

Beat earnings estimates. The company posted adjusted earnings of $0.80 per share, beating the Zacks Consensus Estimate of $0.70. Investors should note that this consensus projection has trended downward over the duration of the quarter.

Beat revenue estimates. The company saw non-GAAP revenue figures of $5.23 billion, topping our consensus estimate of $5.20 billion. Revenue was $5.26 billion on a GAAP basis.

Qualcomm had cash and cash equivalents of $39.6 billion at the end of the second quarter of fiscal 2018, compared to $28.9 billion a year ago and $39.9 billion at the end of Q1. Operating cash flow in Q2 was $0.5 billion.

The first and second quarter of Qualcomm’s fiscal 2018 were affected by its dispute with Apple (NASDAQ:AAPL) and its contract manufacturers, as well as the previously disclosed dispute with another licensee.

“Our fiscal second quarter results reflect better than expected performance in our semiconductor business and lower operating expenses,” said CEO Steve Mollenkopf. “Looking forward, we remain committed to driving improved performance in fiscal 2019, consistent with our prior guidance. We are making good progress on executing our $1 billion cost plan, are focused on closing our pending acquisition of NXP and are well positioned to drive the global commercialization of 5G.”

Qualcomm expects third quarter fiscal 2018 revenue to fall in the range of $4.8 billion to $5.6 billion. This would represent a decrease of 11% to an increase of 4%. Non-GAAP earnings are expected to come in at $0.65 to $0.75 per share. Our latest Zacks Consensus Estimate for Q3 was calling for earnings of $0.73 per share.

Here’s a graph that looks at Qualcomm’s recent earnings performance:

QUALCOMM Incorporated Price, Consensus and EPS Surprise

QUALCOMM Incorporated Price, Consensus and EPS Surprise | QUALCOMM Incorporated Quote

Qualcomm Incorporated is a world leader in 3G, 4G and next-generation wireless technologies. Qualcomm Incorporated includes Qualcomm's licensing business, QTL, and the vast majority of its patent portfolio. Qualcomm Technologies operates, along with its subsidiaries, substantially all of Qualcomm's engineering, research and development functions, and substantially all of its products and services businesses, including its semiconductor business, QCT.

Check back later for our full analysis on QCOM’s earnings report!

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