Qualcomm Inc. (NASDAQ: QCOM) reported first fiscal quarter 2018 results after markets closed on Wednesday. The chipmaker posted adjusted diluted earnings per share (EPS) of $0.98 and revenues of $6.1 billion. In the first quarter of 2017, Qualcomm reported EPS of $1.19 on revenues of $6 billion. The consensus analysts’ estimates called for EPS of $0.91 and $5.93 billion in revenue.
On a GAAP basis Qualcomm reported net loss per share of of $4.03, including non-payment of $700 million in royalties due from Apple and its contract manufacturers; $5.3 billion related to repatriation of earnings held overseas; $562 million in other charges related to the changes to U.S. tax law; and $86 million for deciding not to reinvest certain foreign earnings indefinitely.
The company estimated its fiscal year GAAP effective tax rate at 297% and 8% on a non-GAAP basis, including the $6 billion in first quarter charges and a $1.2 billion fine from the European Commission that is not tax deductible.
Steve Mollenkopf, the company’s CEO, said:
Our fiscal first quarter results reflect continued strong performance in our semiconductor business, as well as continued strength in 3G/4G handset ASPs. We recently detailed our roadmap for value creation, outlining the significant growth potential for Qualcomm as we enter the 5G world and our products and technologies expand into attractive new markets.
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Qualcomm continues to forecast that its $38 billion acquisition of NXP will be completed early this year. The company had no comment on its royalty dispute with Apple or on a hostile offer from Broadcom.
During the quarter the company returned $844 million to shareholders in the form of dividends and $225 million in share repurchases. The quarterly dividend is $0.57 per share.
In its outlook for its second fiscal quarter, Qualcomm guided revenues in a range of $4.8 to $5.6 billion compared with $5 billion actual in the second quarter a year ago. Adjusted EPS is forecast in a range of $0.65 to $0.75, compared with an actual total of $1.34 last year. Analysts were expecting second-quarter EPS of $0.85 on revenues of $5.58 billion.
Qualcomm did not provide full-year estimates, but analysts’ consensus full year estimates call for EPS of $3.54 and revenues of $22.88 billion.
Shares closed at $68.25 Wednesday, up 1.9% for the day. In the after-hours session the stock traded down about 0.8% at $67.75 in a 52-week range of $48.92 to $69.28. The consensus price target was $68.46 ahead of the report.
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