Qualcomm (NASDAQ:QCOM) unveiled its quarterly earnings results late today, amassing a profit that surpassed Wall Street’s expectations, while its guidance for the current quarter is expected to receive a considerable boost from the company’s 5G settlement with Apple (NASDAQ:AAPL).
The San Diego, Calif.-based business said that for its second quarter of 2019, it amassed net income of $663 million, or 55 cents per share, more than doubling its year-ago profit of $330 million, or 22 cents per share. On an adjusted basis, it earned 77 cents per share, ahead of the 71 cents per share that 20 analysts surveyed by FactSet projected on average.
Qualcomm’s sales for the period reached $4.98 billion, marking a 4.6% decline from the $5.22 billion it raked in during the same period in 2018. The Wall Street consensus estimate saw the chipmaker amassing sales of $4.8 billion, per a survey of 17 analysts conducted by FactSet.
For its third quarter, the company predicts its earnings will be in the range of $3.57 to $3.77 per share, a figure that is positively impacted by the company’s settlement with Apple. The settlement is a result of a 5G chip dispute for future smartphones, which added about $3.02 to $3.12 per share to Qualcomm’s third quarter.
The company sees its revenue for the period in the range of $9.2 billion to $10.2 billion per share, with the settlement adding about $4.5 billion to $4.7 billion. On an adjusted basis, the company predicts earnings of 70 cents to 80 cents per share, below the FactSet guidance of $1.29 per share.
QCOM stock is sliding roughly 2.9% after the bell Wednesday despite the company’s strong quarterly performance. Shared had increased 0.3% during regular trading hours in anticipation of Qualcomm’s results.