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Qualcomm (QCOM) Beats Q1 Earnings and Revenue Estimates
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Qualcomm (QCOM - Free Report) reported strong financial results for first-quarter fiscal 2018 (ended Dec 24, 2017), with the top and the bottom lines beating the Zacks Consensus Estimate.
Qualcomm operates in a highly competitive global mobile semiconductor market with incumbents like Broadcom (AVGO - Free Report) , Analog Devices and Intel (ITC). Intense competition in the wireless baseband chipset market has forced the largest mobile chipset manufacturer to diversify in the lucrative IoT market.
Net Income
On a GAAP basis, quarterly net loss came in at $5,953 million or $4.03 per share against net income of $682 million or 46 cents in the year-ago quarter. Adjusted earnings per share (excluding special items) were 98 cents, higher than the Zacks Consensus Estimate of 90 cents.
QUALCOMM Incorporated Price, Consensus and EPS Surprise
Quarterly total revenues of $6,068 million increased 1.2% year over year. Moreover, the figure surpassed the Zacks Consensus Estimate of $5,947.7 million.
Segment-wise, Qualcomm Code Division Multiple Access (CDMA) Technologies (QCT) contributed $4,651 million revenues compared with $4,101 million in the prior-year quarter. EBT (earnings before tax) margin was 21% compared with 18% in the prior-year quarter. Qualcomm Technology Licensing (QTL) generated $1,299 million, down 28% year over year. EBT margin was 68% compared with 85% in the prior-year quarter. The disappointing performance of QTL segment was caused by the ongoingdispute with Apple (AAPL - Free Report) and its contract manufacturers and the previously disclosed dispute with another licensee.
Operating Metrics
Quarterly operating income came in at $29 million compared with $778 million in the year-ago quarter.
Chipset Statistics
During the quarter, Qualcomm shipped approximately 237 million CDMA-based MSM (Mobile Station Modem) chipsets, up 9% year over year. The figure surpassed management’s first-quarter fiscal 2018 chipset outlook in the range of 220-240 million.
Cash Flow & Liquidity
During the first quarter of fiscal 2018, Qualcomm generated $1,844 million of cash from operating activities compared with $1,616 million in the prior-year quarter. Free cash flow in the reported quarter was $1,618 million compared with $1,487 million in the prior-year quarter.
As of Dec 24, 2017, Qualcomm had $33,362 million of cash, cash equivalents and marketable securities compared with $6,885 million at the end of 2016. Total outstanding debt was $19,381 million at the end of the reported quarter compared with $19,398 million at the end of September 2016.
Stockholders’ Wealth
During the first quarter of fiscal 2018, Qualcomm returned $1.1 billion to stockholders. This included $844 million (57 cents per share) of cash dividend and $225 million through repurchases of 3.7 million shares of common stock. On Jan 12, the company announced a cash dividend of 57 cents per share payable on Mar 21, to stockholders of record as of Feb 28.
Second-Quarter Fiscal 2018 Outlook
Revenues for the second quarter of fiscal 2018 are estimated in the range of $4.8-$5.6 billion. GAAP earnings per share are estimated between 41 cents and 51 cents. Non-GAAP earnings per share are projected between 65 cents and 75 cents. Qualcomm is expected to ship 170-190 million MSM chipsets in the ongoing quarter.
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Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
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Qualcomm (QCOM) Beats Q1 Earnings and Revenue Estimates
Qualcomm (QCOM - Free Report) reported strong financial results for first-quarter fiscal 2018 (ended Dec 24, 2017), with the top and the bottom lines beating the Zacks Consensus Estimate.
Qualcomm carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Qualcomm operates in a highly competitive global mobile semiconductor market with incumbents like Broadcom (AVGO - Free Report) , Analog Devices and Intel (ITC). Intense competition in the wireless baseband chipset market has forced the largest mobile chipset manufacturer to diversify in the lucrative IoT market.
Net Income
On a GAAP basis, quarterly net loss came in at $5,953 million or $4.03 per share against net income of $682 million or 46 cents in the year-ago quarter. Adjusted earnings per share (excluding special items) were 98 cents, higher than the Zacks Consensus Estimate of 90 cents.
QUALCOMM Incorporated Price, Consensus and EPS Surprise
QUALCOMM Incorporated Price, Consensus and EPS Surprise | QUALCOMM Incorporated Quote
Revenues
Quarterly total revenues of $6,068 million increased 1.2% year over year. Moreover, the figure surpassed the Zacks Consensus Estimate of $5,947.7 million.
Segment-wise, Qualcomm Code Division Multiple Access (CDMA) Technologies (QCT) contributed $4,651 million revenues compared with $4,101 million in the prior-year quarter. EBT (earnings before tax) margin was 21% compared with 18% in the prior-year quarter. Qualcomm Technology Licensing (QTL) generated $1,299 million, down 28% year over year. EBT margin was 68% compared with 85% in the prior-year quarter. The disappointing performance of QTL segment was caused by the ongoingdispute with Apple (AAPL - Free Report) and its contract manufacturers and the previously disclosed dispute with another licensee.
Operating Metrics
Quarterly operating income came in at $29 million compared with $778 million in the year-ago quarter.
Chipset Statistics
During the quarter, Qualcomm shipped approximately 237 million CDMA-based MSM (Mobile Station Modem) chipsets, up 9% year over year. The figure surpassed management’s first-quarter fiscal 2018 chipset outlook in the range of 220-240 million.
Cash Flow & Liquidity
During the first quarter of fiscal 2018, Qualcomm generated $1,844 million of cash from operating activities compared with $1,616 million in the prior-year quarter. Free cash flow in the reported quarter was $1,618 million compared with $1,487 million in the prior-year quarter.
As of Dec 24, 2017, Qualcomm had $33,362 million of cash, cash equivalents and marketable securities compared with $6,885 million at the end of 2016. Total outstanding debt was $19,381 million at the end of the reported quarter compared with $19,398 million at the end of September 2016.
Stockholders’ Wealth
During the first quarter of fiscal 2018, Qualcomm returned $1.1 billion to stockholders. This included $844 million (57 cents per share) of cash dividend and $225 million through repurchases of 3.7 million shares of common stock. On Jan 12, the company announced a cash dividend of 57 cents per share payable on Mar 21, to stockholders of record as of Feb 28.
Second-Quarter Fiscal 2018 Outlook
Revenues for the second quarter of fiscal 2018 are estimated in the range of $4.8-$5.6 billion. GAAP earnings per share are estimated between 41 cents and 51 cents. Non-GAAP earnings per share are projected between 65 cents and 75 cents. Qualcomm is expected to ship 170-190 million MSM chipsets in the ongoing quarter.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
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