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Qualcomm Beats Street On Q2 Earnings, But Offers Lower Guidance

Qualcomm Beats Street On Q2 Earnings, But Offers Lower Guidance

QUALCOMM, Inc. (NASDAQ: QCOM) reported a second-quarter earnings beat Wednesday, but lower guidance for the next quarter. The stock dropped after hours, halting, at least temporarily, what had been a stunning recent run-up that followed the chipmaker's settlement of litigation that had weighed on previous earnings.

The San Diego-based semiconductor company reported adjusted earnings of 77 cents a share on earnings of $4.98 billion. That beat Street expectations of 70 cents per share on revenue of $4.80 billion.

Qualcomm's guidance for the third quarter was below estimates. The company said it expects third-quarter EPS of 70 cents to 80 cents per share versus Street expectations of 87 cents, on sales of $4.7 billion to $5.5 billion, also below estimates of $5.08 billion.

Qualcomm and Apple Inc. (NASDAQ: AAPL) announced in mid-April they were settling a tangle of patent and royalty litigation, an announcement that sent Qualcomm surging more than 50 percent since the settlement. Several analysts said the company was free after the settlement to focus more on its business. In its previous quarterly earnings report, Qualcomm had said the Apple dispute was disrupting business and hurting revenue.

“We delivered a better than expected quarter with earnings per share above the high end of our estimates," said CEO Steve Mollenkopf. “We are also pleased to have reached multi-year agreements with Apple and look forward to continuing to support them as a customer.

"We are executing well on our strategic priorities as 5G commercial launches begin around the world," Mollenkopf continued. "Our 5G technology and product leadership, as well as our expansion into new industries and product categories, creates a strong foundation for long-term revenue and earnings growth.”

Price Action

Shares of Qualcomm were down 4.3 percent in after-hours trading to $82.61.

Related Links:

Qualcomm Analyst Weighs Pros And Cons Of Apple Deal

'Significant Win': Wall Street Weighs In On Qualcomm-Apple Deal

Posted-In: Earnings News Guidance Top Stories After-Hours Center Best of Benzinga


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