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Qualcomm beats Street fiscal 3rd-quarter forecasts

July 20, 2016

SAN DIEGO (AP) — Qualcomm Inc. on Wednesday reported improved results in its June quarter and issued a solid outlook for the current three-month period, and its shares jumped in after-hours trading.

The San Diego-based company earned $1.44 billion, or 97 cents per share, up from $1.18 billion, or 73 cents per share. Earnings, adjusted for stock option expense and non-recurring costs, were $1.16 per share.

The results topped Wall Street expectations. The average estimate of 11 analysts surveyed by Zacks Investment Research was for earnings of 98 cents per share.

The chipmaker posted revenue of $6.04 billion in the period, which also beat Street forecasts. Ten analysts surveyed by Zacks expected $5.55 billion. A year ago Qualcomm posted revenue of $5.83 billion.

Qualcomm said results in the latest quarter reflect “meaningful progress” with licensees in China as well as a strong new product ramp among original equipment manufacturers in that country.

“We are executing well on our strategic priorities, and we remain confident that our focused investments in 5G and other advanced technologies will create a strong foundation for long-term earnings growth,” CEO Steve Mollenkopf said, referring to the next generation of mobile telecommunications technology.

For the current quarter ending in September, Qualcomm expects its adjusted per-share earnings to range from $1.05 to $1.15 with revenue between $5.4 billion and $6.2 billion. Analysts surveyed by FactSet expect, on average, earnings per share of $1.08 on revenue of $5.73 billion.

Qualcomm shares have increased 12 percent since the beginning of the year, while the Standard & Poor’s 500 index has increased slightly more than 6 percent. They closed Wednesday at $55.82, a decrease of 12 percent in the last 12 months.

The stock gained 7 percent, or $3.87, to $59.69 in after-hours trading following the earnings report.

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Elements of this story were generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on QCOM at http://www.zacks.com/ap/QCOM

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Keywords: Qualcomm, Earnings Report

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