Qualcomm Had Good Earnings But Poor Guidance

After the bell, Qualcomm ($QCOM) reported Q4 earnings of $1.34 per share which was nine cents better than estimates.

Underlining the strength of broader phone demand, and illustrating how much most phone makers still depend on its chips, Qualcomm topped estimates for fiscal first-quarter profit and gave a rosy forecast for the current period.

A record quarter for Apple Inc.’s iPhone, which uses a Qualcomm modem chip, helped the chipmaker’s earnings. For the period ended Dec. 28, Qualcomm’s net income rose to $1.97 billion, or $1.17 a share, from $1.88 billion, or $1.09, a year earlier. Sales rose 7.2 percent to $7.1 billion. Excluding certain costs, profit was $1.34 a share. Analysts on average had projected profit of $1.25 a share on sales of $6.94 billion.

Profit before some items in the second quarter, which ends in March, will be $1.28 to $1.40 a share, the company said Wednesday. Sales will be $6.5 billion to $7.1 billion. On average, analysts projected profit of $1.28 a share and revenue of $6.72 billion, according to data compiled by Bloomberg.

The problem is that the company lowered their full-year guidance:

Sales for fiscal 2015 will be $26 billion to $28 billion, the San Diego-based company said in a statement. Profit excluding certain costs for the year will be $4.75 to $5.05 a share. The company previously projected as much as $28.8 billion in revenue and $5.35 in per-share profit.

The stock fell 8.3% in the after-hours market.

Posted by on January 28th, 2015 at 9:15 pm

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