Qualcomm beat Wall Street’s forecasts

Qualcomm reported earnings for the second fiscal quarter that beat analyst expectations on Wednesday, as well as revenue that topped estimates amid better-than-expected sales in its technology division.

Earnings

  • Adjusted EPS: $1.34 a share, ex-items vs. $1.19 per share expected by Thomson Reuters consensus
  • Revenue: $5.99 billion vs. $5.89 billion expected by Thomson Reuters consensus

Adjusted earnings were up 29 percent from the $1.04 per share reported a year ago, while adjusted revenues were up 8 percent from the $5.5 billion reported this time last year.

  • Q3 adjusted EPS guidance: Range of 90 cents a share to $1.15 a share vs. $1.09 a share expected by Thomson Reuters consensus
  • Q3 revenue guidance: Range of $5.3 billion to $6.1 billion vs. $5.94 billion expected Thomson Reuters consensus

 

Snapdragon 835 chips are selling faster than they can be put on the shelves due to the S8 launch, and sales and shipment of 3G and 4G phones are steadily growing due to strong sales in China. IoT, sever chips, and 5G technology segments are all showing continued promise as well.
The company also has an incredibly strong history of returning capital to investors through both an increasing dividend and share buybacks when it sees appropriate. Holding a blue-chip tech stock yielding over 4% in dividends with strong coverage isn’t a bad scenario to be in.

Perhaps the most important information that Qualcomm presented during its fiscal 2017 Q2 earnings conference call today had nothing to do with any financial metric. During the conference call, company management disclosed, almost as an aside, that the acquisition of NXP Semiconductors had passed the HSR review process.

Despite Qualcomm’s legal travails, I would like to buy even more QCOM. Maybe later….

 

And you, what’s your opinion about QCOM?


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