Qualcomm Beats Q1 Views, Cuts Outlook


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Qualcomm, Inc. (NASDAQ: QCOM) shares faltered in Wednesday's extended session after the company cut its outlook on the loss of prospective sales to a large customer as well as competition in China.

The company cut its forecast fiscal 2015 adjusted earnings to $4.75 to $5.05 a share, on revenue of $26 billion to $28 billion.

Wall Street projects adjusted profit of $5.21 a share, on revenue of $27.81 billion for fiscal 2015.

Qualcomm had previously forecast adjusted profit of $5.05 to $5.35 a share on revenue of $26.8 billion to $28.8 billion.

For the recent first quarter, Qualcomm posted net income of $2 billion, or $1.17 a share, up from $1.9 billion, or $1.09 a share, a year ago. Revenue grew to $7.1 billion, from $6.6 billion last year.

Adjusted first-quarter income equaled $1.34 a share.

Wall Street expected adjusted income of $1.25 a share, on revenue of $6.94 billion.

The company changed hands recently at $64.79, down more than 8.7 percent.

Qualcomm said one of its key processor products called Snapdragon "will not be in the upcoming design cycle of a large customer's flagship device."

China meanwhile "presents significant challenges," Qualcomm said, noting a previously disclosed investigation of its business practices by Chinese authorities as well as continued difficulties there with product license holders, despite a recent settlement.

Qualcomm also said a shift in share among original equipment manufacturers reduced its near-term opportunity for sales of Snapdragon.


27% profits every 20 days?

This is what Nic Chahine averages with his options buys. Not selling covered calls or spreads... BUYING options. Most traders don't even have a winning percentage of 27% buying options. He has an 83% win rate. Here's how he does it.


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Posted In: EarningsNewsGuidanceAfter-Hours Center