We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Qualcomm (QCOM) Q4 Earnings, Revenues Top; Guides Well
Read MoreHide Full Article
Qualcomm Inc. (QCOM - Free Report) reported impressive financial results in the fourth quarter of fiscal 2016 wherein both the top and the bottom line surpassed the Zacks Consensus Estimate. The spectacular performance can be primarily attributed to new patent licensing agreements in China and strong shipments of 3G/4G smartphone chipsets.
Net Income
On a GAAP basis, quarterly net income came in at $1,599 million or $1.07 per share compared with $1,061 million or 67 cents in the year-ago quarter. Meanwhile, adjusted (excluding special items) earnings per share were $1.17, significantly above the Zacks Consensus Estimate of 98 cents.
Total quarterly revenue of $6,184 million surged 13.3% year over year, outpacing the Zacks Consensus Estimate of $5,788 million. Segment-wise, Qualcomm CDMA Technologies businesses contributed $4,124 million to revenues in the fourth quarter, up 14% from the prior-year quarter and its quarterly EBT margin stands at 17% while Qualcomm Technology Licensing generated $1,885 million in revenues, growing 6% year over year and its quarterly EBT margin was 84%.
Chipset Statistics
During the fourth quarter of 2016, Qualcomm shipped approximately 211 million CDMA-based MSM chipsets, advancing 4% year over year. This figure surpassed the mid-point of the company’s guidance which was pegged at 205 million. Average selling price of a 3G/4G handset with an in-built Qualcomm chipset during the quarter was around $181-$187.
Operating Metrics
Quarterly operating income came in at $1,804 million compared with $1,140 million in the year-ago quarter. Quarterly operating margin was 29.2% compared with 20.9% in the prior-year quarter. Quarterly adjusted EBT was $1,960 million compared with $1,252 million in the year-ago quarter. In the reported quarter, the company returned nearly $782 million (53 cents per share) to its shareholders in the form of cash dividends and another $225 million through the repurchase of 3.6 million shares of common stock.
Cash Flow
During the fourth quarter, Qualcomm generated $2,084 million of cash from operating activities against $1,684 million in the prior-year quarter. Free cash flow in the reported quarter, was $1,934 million as against $1,505 million in the year-ago quarter.
Liquidity
At the end of fiscal 2016, Qualcomm had $32,350 million of cash, cash equivalents and marketable securities and $11,757 million of outstanding debt in its balance sheet compared with $30,947 million and $10,969 million, respectively, at the end of fiscal 2015.
First-Quarter Fiscal 2017 Outlook
First of quarter fiscal 2017 revenues are estimated to be in the range of $5.7--$6.5 billion. GAAP earnings per share are projected at 91 cents - $1.01. Non-GAAP earnings per share are estimated between $1.12 and $1.22. Qualcomm is expected to ship 205–225 million MSM chipsets in the first quarter.
Latest Development
In Oct 27, Qualcommentered into a definitive agreement to acquire the Netherlands-based chipset giant NXP Semiconductors NV (NXPI - Free Report) for a total consideration of approximately $47 billion (equity value of $39 billion).The deal is anticipated to be closed by the end of 2017 subject to all necessary regulatory approvals.
This transaction will place Qualcomm in the second position after Intel Corp. (INTC - Free Report) in terms of sales in the broader global semiconductor market. Moreover, the combined entity will also become a formidable challenger to other large semiconductor firms like Broadcom Ltd. (AVGO - Free Report) , Analog Devices Inc. (ADI - Free Report) and ARM Holdings.
The major positive of the deal is that it will enable Qualcomm to diversify its business modelinto highly lucrative end markets such asautomotive, industrial and Internet of Things (IoT). Qualcomm currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Qualcomm (QCOM) Q4 Earnings, Revenues Top; Guides Well
Qualcomm Inc. (QCOM - Free Report) reported impressive financial results in the fourth quarter of fiscal 2016 wherein both the top and the bottom line surpassed the Zacks Consensus Estimate. The spectacular performance can be primarily attributed to new patent licensing agreements in China and strong shipments of 3G/4G smartphone chipsets.
Net Income
On a GAAP basis, quarterly net income came in at $1,599 million or $1.07 per share compared with $1,061 million or 67 cents in the year-ago quarter. Meanwhile, adjusted (excluding special items) earnings per share were $1.17, significantly above the Zacks Consensus Estimate of 98 cents.
Revenue
Total quarterly revenue of $6,184 million surged 13.3% year over year, outpacing the Zacks Consensus Estimate of $5,788 million. Segment-wise, Qualcomm CDMA Technologies businesses contributed $4,124 million to revenues in the fourth quarter, up 14% from the prior-year quarter and its quarterly EBT margin stands at 17% while Qualcomm Technology Licensing generated $1,885 million in revenues, growing 6% year over year and its quarterly EBT margin was 84%.
Chipset Statistics
During the fourth quarter of 2016, Qualcomm shipped approximately 211 million CDMA-based MSM chipsets, advancing 4% year over year. This figure surpassed the mid-point of the company’s guidance which was pegged at 205 million. Average selling price of a 3G/4G handset with an in-built Qualcomm chipset during the quarter was around $181-$187.
Operating Metrics
Quarterly operating income came in at $1,804 million compared with $1,140 million in the year-ago quarter. Quarterly operating margin was 29.2% compared with 20.9% in the prior-year quarter. Quarterly adjusted EBT was $1,960 million compared with $1,252 million in the year-ago quarter. In the reported quarter, the company returned nearly $782 million (53 cents per share) to its shareholders in the form of cash dividends and another $225 million through the repurchase of 3.6 million shares of common stock.
Cash Flow
During the fourth quarter, Qualcomm generated $2,084 million of cash from operating activities against $1,684 million in the prior-year quarter. Free cash flow in the reported quarter, was $1,934 million as against $1,505 million in the year-ago quarter.
Liquidity
At the end of fiscal 2016, Qualcomm had $32,350 million of cash, cash equivalents and marketable securities and $11,757 million of outstanding debt in its balance sheet compared with $30,947 million and $10,969 million, respectively, at the end of fiscal 2015.
First-Quarter Fiscal 2017 Outlook
First of quarter fiscal 2017 revenues are estimated to be in the range of $5.7--$6.5 billion. GAAP earnings per share are projected at 91 cents - $1.01. Non-GAAP earnings per share are estimated between $1.12 and $1.22. Qualcomm is expected to ship 205–225 million MSM chipsets in the first quarter.
Latest Development
In Oct 27, Qualcommentered into a definitive agreement to acquire the Netherlands-based chipset giant NXP Semiconductors NV (NXPI - Free Report) for a total consideration of approximately $47 billion (equity value of $39 billion).The deal is anticipated to be closed by the end of 2017 subject to all necessary regulatory approvals.
This transaction will place Qualcomm in the second position after Intel Corp. (INTC - Free Report) in terms of sales in the broader global semiconductor market. Moreover, the combined entity will also become a formidable challenger to other large semiconductor firms like Broadcom Ltd. (AVGO - Free Report) , Analog Devices Inc. (ADI - Free Report) and ARM Holdings.
The major positive of the deal is that it will enable Qualcomm to diversify its business modelinto highly lucrative end markets such asautomotive, industrial and Internet of Things (IoT). Qualcomm currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
QUALCOMM INC Price, Consensus and EPS Surprise
QUALCOMM INC Price, Consensus and EPS Surprise | QUALCOMM INC Quote
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>