Qualcomm, Inc. (QCOM) Posts Q1 Earnings Beat, Weak Q2 Guidance

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Qualcomm, Inc. (NASDAQ:QCOM) unveiled its first-quarter results after the bell Wednesday, topping expectations.

Qualcomm, Inc. (QCOM)The semiconductor provider reported revenue of $6.04 billion, ahead of the $5.93 billion that analysts polled by Thomson Reuters were calling for. Adjusted earnings were 98 cents per share, beating the 91 cents per share that Thomson Reuters predicted.

Qualcomm’s operating profit for the first quarter of fiscal 2018 fell 96% year-over-year to break even as Apple Inc. (NASDAQ:AAPL) withheld royalty payments. The dispute between the two companies resulted in Qualcomm not receiving any license revenues from Apple during its first quarter, a figure that came in at $740 million in the year-ago quarter.

In its QCT segment, the company raked in $4.65 billion, a 13% improvement compared to the year-ago quarter. Its EBT segment raked in $955 million, a 32% gain year-over-year.

Qualcomm’s MSM chip segments garnered $237 million, while its QTL segment brought in $1.3 billion, a 9% gain and 28% decline respectively. Its EBT segment brought in $887 million, falling 42% year-over-year.

The chipmaker was also hit with a $6 billion charge linked to the recent U.S. tax reform law, plus a fine of $1.2 billion from the European Commission over illegal payments made to Apple.

For its second quarter, Qualcomm predicts it will rake in between $4.8 billion and $5.6 billion in revenue, below the consensus estimate of $5.57 billion. Earnings are slated to be in the range of 65 cents to 75 cents per share on an adjusted basis, below the consensus of 86 cents per share.

QCOM stock fell 0.9% after hours Wednesdya.


Article printed from InvestorPlace Media, https://investorplace.com/2018/01/qualcomm-inc-qcom-2/.

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