Categories AlphaGraphs, Earnings, Technology

Qualcomm swings to loss in Q4, shares dip

Qualcomm (QCOM) swung to a loss of 35 cents per share in Q4 from a profit of 11 cents per share a year ago, primarily hurt by a patent battle with Apple (AAPL), as well as termination charges related to the discontinued acquisition of NXP Semiconductors (NXPI).

Adjusted earnings came in at 90 cents per share, higher than analysts’ expectations of 83 cents per share. Revenue for the quarter fell 2% to $5.8 billion but came in above analysts’ projection of $5.53 billion. Qualcomm shares fell over 3% in after-market trading on Wednesday.

Qualcomm fourth quarter 2018 Earnings Infographic

CEO Steve Mollenkopf said, “We delivered a strong quarter, with non-GAAP earnings per share above the high end of our prior expectations, on greater than expected chipset demand in QCT and lower operating expenses.”

“We are executing well on our strategic objectives, including driving the commercialization of 5G globally in 2019 and returning significant capital to our stockholders,” he added.

For the first quarter of 2019, Qualcomm sees adjusted EPS of 98 cents on a revenue of $6.1 billion. For the full year, the chipmaking giant predicts EPS of $1.05 – $1.15 on revenues between $4.5 billion and $5.3 billion.

Various media outlets had earlier today reported that Apple is not planning to settle the $7 billion legal battle with Qualcomm, and was mulling a trial. CEO Mollenkopf had earlier stated that he was looking for an out-of-the-court settlement.

The stock has rallied about 50% from its 52-week lows in late April to touch a new one-year high in September. However, market-wide volatility and fears of an impending semiconductor sell-off have battered QCOM as of late.

Qualcomm sees a long-term partner in Apple despite disputes

Qualcomm has also announced its plan to set up a new manufacturing engineering and testing center in Hsinchu, Taiwan. The unit is expected to become operational in the first quarter of next year.

 

Listen to publicly listed companies’ earnings conference calls along with the edited closed caption text. 

Most Popular

Does Unity Software (U) stock has more room to run?

Last month, the IPO market was in a full swing. IPOs of Snowflake (NYSE: SNOW) and JFROG (NASDAQ: FROG) had an impressive opening day in September, the former creating a

PepsiCo (PEP): Steady snacking habits amid pandemic drive strong quarter for beverage giant

PepsiCo Inc. (NASDAQ: PEP) beat market expectations on both revenue and earnings for the third quarter of 2020. The company saw the momentum continue in its snacks business while the

Does the virus-driven boom make Electronic Arts (EA) a good investment?

With more and more people turning to virtual entertainment sources, amid the virus-related movement restrictions, video game publishers like Electronic Arts (NASDAQ: EA) are witnessing unusually high demand. Not surprisingly,

Leave a Reply

Your email address will not be published. Required fields are marked *

Add Comment
Loading...

Cancel
Viewing Highlight
Loading...
Highlight
Close
Top