QUALCOMM Incorporated Earnings: Here’s Why the Stock is Up Now

QUALCOMM Incorporated (NASDAQ:QCOM) delivered a profit and met 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 up 3.52%.

QUALCOMM Incorporated Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 21.18% to $1.03 in the quarter versus EPS of $0.85 in the year-earlier quarter.

Revenue: Rose 34.95% to $6.24 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: QUALCOMM Incorporated reported adjusted EPS income of $1.03 per share. By that measure, the company missed the mean analyst estimate of $1.03. It beat the average revenue estimate of $6.05 billion.

Quoting Management: “We delivered another strong quarter as our Qualcomm Snapdragon solutions were prominent in a broad set of flagship smartphones, and 3G/4G device average selling prices were stronger than expected. We also focused on return of capital to stockholders and increased our stock repurchases and dividends paid during the quarter,” said Dr. Paul E. Jacobs, chairman and CEO of Qualcomm. “This quarter, we continued our technology leadership, with our Snapdragon 800 processor powering the world’s first LTE-Advanced smartphone. We see expanding opportunities for growth of 3G/4G devices around the globe, driven by the strong pace of innovation in the industry.”

Key Stats (on next page)…

Revenue increased 1.94% from $6.12 billion in the previous quarter. EPS decreased 11.97% from $1.17 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $1.08 and has not changed. For the current year, the average estimate has moved up from a profit of $4.53 to a profit of $4.54 over the last ninety days.

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