Qualcomm Reports Q1 Results, Sees 19% Revenue Increase Y/Y

Qualcomm, Inc.

reported first-quarter earnings for 2016 at market close on January 27, showing nearly 20 percent revenue growth since last year, increasing to $5.8 billion. Diluted EPS fell from $1.17 in the first quarter of 2015 to the current figure of $0.99. Qualcomm beat expectations, with analyst consensus for Q1 2016 expecting a $0.90 EPS. In a press release, Qualcomm noted that the company offered $2.7 billion in dividends, broken down to $2 billion in buybacks and $700 million in dividends. CEO Steve Mollenkopf credited the strong revenue showing to strong device sales, new deals with Chinese partners and effective cost-reduction measures. "We delivered a stronger than expected quarter with earnings per share above the high end of our initial estimates, and we expect improving trends in our chipset business in the second half of fiscal 2016," Mollenkopf said. The company issued a second quarter guidance that predicts a 29-36 percent drop in EPS from Q2 2015, to $0.90 to $1.00. Analysts expect EPS of $1.02 for the second quarter. Qualcomm shares were down 2 percent in after-market action.