QUALCOMM Earnings: Here’s Why the Stock is Falling Now

QUALCOMM Incorporated (NASDAQ:QCOM) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 6.97%.

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QUALCOMM Incorporated Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 15.84% to $1.17 in the quarter versus EPS of $1.01 in the year-earlier quarter.

Revenue: Rose 23.89% to $6.12 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: QUALCOMM Incorporated reported adjusted EPS income of $1.17 per share. By that measure, the company beat the mean analyst estimate of $1.16. It beat the average revenue estimate of $6.07 billion.

Quoting Management: “We delivered another strong quarter as the worldwide adoption of smartphones continues,” said Dr. Paul E. Jacobs, chairman and CEO of Qualcomm. “Looking forward, we are seeing strong traction with our new Qualcomm Snapdragon 600 and 800 processors, and we continue to expect healthy growth in 3G and 3G/4G multimode devices around the world. We are pleased to be raising our calendar 2013 3G/4G device shipment estimates and our revenue and earnings guidance for fiscal 2013.”

Key Stats (on next page)…

Revenue increased 1.76% from $6.02 billion in the previous quarter. EPS decreased 7.14% from $1.26 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $1.02 to a profit $1.04. For the current year, the average estimate has moved up from a profit of $4.32 to a profit of $4.53 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

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