QUALCOMM Posts Upbeat Q2 Results, But Lowers FY Outlook

reported stronger-than-expected results for the fiscal second quarter, but the company lowered its outlook for the full year. The San Diego, California-based company posted quarterly earnings of $1.05 billion, or $0.63 per share, versus $1.96 billion, or $1.14 per share, in the year-earlier period. Excluding one-time items, the company's earnings rose to $1.40 per share from $1.31 per share. Its revenue climbed to $6.89 billion from $6.37 billion. However, analysts were projecting earnings of $1.33 per share on revenue of $6.83 billion. At the end of the second quarter, the company's cash, cash equivalents and marketable securities totaled $29.6 billion, versus $32.1 billion a year earlier. During the second quarter, QUALCOMM returned $2.6 billion to stockholders. The average estimate among 66 Estimize users was for earnings of $1.34 per share and revenue of $6.81 billion. "We are pleased with our second quarter results, with record licensing revenues and earnings driven by all-time high 3G/4G device shipments reported by our licensees. We continue to see robust global demand for 3G/4G devices, including in China where our licensing business is now better positioned to participate in the rapidly accelerating adoption of our 3G/4G technology," said Steve Mollenkopf, CEO of Qualcomm Incorporated. "While we remain confident in the significant growth opportunities ahead, we are reducing our QCT outlook for fiscal 2015, primarily due to the increased impact of customer share shifts within the premium tier and a decline in our share at a large customer." For 2015, the company lowered its forecast for semiconductor business. Qualcomm projects Q3 adjusted earnings of $0.85 to $1 per share, on revenue of $5.4 billion to $6.2 billion. Analysts had expected earnings of $1.13 per share on revenue of $6.5 billion. The company also lowered its FY15 earnings forecast to $4.60 to $5 per share, versus $4.85 to $5.05 per share. It also lowered its revenue outlook to $25 billion to $27 billion, compared to $26.3 billion to $28 billion. QUALCOMM shares fell 2.20 percent to $67.42 in the after-hours trading session.