QUALCOMM Earnings: Profits GROW by Double Digits For Fifth Quarter

S&P 500 (NYSE:SPY) component QUALCOMM Incorporated (NASDAQ:QCOM) reported higher profit for the third quarter as revenue showed growth. Qualcomm designs and manufactures digital wireless telecommunications products and services based on its CDMA technology and other technologies.

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QUALCOMM Incorporated Earnings Cheat Sheet

Results: Net income for QUALCOMM Incorporated rose to $1.21 billion (69 cents per share) vs. $1.03 billion (61 cents per share) in the same quarter a year earlier. This marks a rise of 16.6% from the year-earlier quarter.

Revenue: Rose 27.7% to $4.63 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: QUALCOMM Incorporated fell short of the mean analyst estimate of 77 cents per share. Analysts were expecting revenue of $4.68 billion.

Quoting Management: “Adoption of 3G and 3G/4G technologies continues around the world, driving strong year-over-year growth in our chipset and licensing businesses this quarter,” said Dr. Paul E. Jacobs, chairman and CEO of Qualcomm. “Looking forward, our growth estimates for 3G/4G device shipments in calendar 2012 have moderated slightly, and we now expect the demand profile of the calendar year to be more back-end loaded as new devices are launched for the holiday season. Although our outlook for semiconductor volumes in the fiscal fourth quarter has been reduced from our prior expectations, we are ramping supply of our 28 nanometer chipsets to help enable what we expect to be a strong December quarter for our semiconductor business.”

Key Stats:

The company has enjoyed double-digit year-over-year percentage revenue growth for the past five quarters. Over that span, the company has averaged growth of 33.7%, with the biggest boost coming in the first quarter when revenue rose 39.8% from the year earlier quarter.

Last quarter marked the fifth straight quarter that the company saw shrinking gross margins, as gross margin fell 1.9 percentage points to 62.8% from the year-earlier quarter. In that span, margins have contracted an average of 2.2 percentage points per quarter on a year-over-year basis.

The company has now seen its net income increase for three consecutive quarters. In the second quarter, net income rose more than twofold and in the first quarter, the figure rose 19.7%.

The company fell short of forecasts after beating estimates in the previous two quarters. In the second quarter, it topped the mark by 4 cents, and in the first quarter, it was ahead by 6 cents.

Looking Forward: The outlook for the company’s results in the upcoming quarter is unfavorable. The average estimate for the fourth quarter is 79 cents per share, down from 90 cents ninety days ago. For the fiscal year, the average estimate has moved down from $3.33 a share to $3.30 over the last thirty days.

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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