Qualcomm Earnings Beat Still Disappoints Investors

By Chris Lange Updated Jan 13, 10:31AM EST · Published Apr 20, 4:47PM EDT

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Qualcomm Earnings Beat Still Disappoints Investors — © Thinkstock

Qualcomm Inc. (NASDAQ: QCOM) reported fiscal second-quarter financial results after the markets closed on Wednesday. The company had $1.04 in earnings per share (EPS) on $5.5 billion in revenue compared to consensus estimates from Thomson Reuters that called for $0.96 in EPS on $5.34 billion in revenue. The same period from last year had $1.40 in EPS on $6.89 billion in revenue.

Earlier this month, Qualcomm announced a cash dividend of $0.53 per share payable on June 22, to stockholders of record on June 1. The dividend represents a 10% increase over the prior quarterly dividend.

In terms of fiscal third-quarter guidance, the company expects to have $0.99 in EPS on $5.8 billion in revenue. There are consensus estimates that are calling for $1.02 in EPS on $5.56 billion in revenue.

On the books, cash, cash equivalents and marketable securities totaled $30 billion at the end of the quarter, compared to $29.6 billion a year ago.

Steve Mollenkopf, CEO of Qualcomm, commented:

Our fiscal second quarter results were driven by stronger than expected performance across our chipset and licensing businesses. We are pleased with our continued progress in the licensing business, including the recent conclusion of new license agreements in China and the resolution of our dispute with LG Electronics. We are continuing to build momentum into the second half of our fiscal 2016 with traction for our Snapdragon processors in the premium and high tiers and strong execution of our strategic realignment plan.

Shares of Qualcomm closed Wednesday up 0.5% at $52.09, with a consensus analyst price target of $56.36 and a 52-week trading range of $42.24 to $71.32. Following the release of the earnings report the stock was initially down 1.2% at $51.45 in the after-hours trading session.

About the Author Chris Lange →

Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics.

Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications.

A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.