QUALCOMM Earnings: Blows Past Analysts’ Estimates

S&P 500 (NYSE:SPY) component QUALCOMM Incorporated (NASDAQ:QCOM) reported net income above Wall Street’s expectations for the fourth quarter. 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 the wireless equipment rose to $1.27 billion (73 cents per share) vs. $1.06 billion (62 cents per share) in the same quarter a year earlier. This marks a rise of 20.4% from the year-earlier quarter.

Revenue: Rose 18.3% to $4.87 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: QUALCOMM Incorporated reported adjusted net income of 89 cents per share. By that measure, the company beat the mean estimate of 70 cents per share. It beat the average revenue estimate of $4.68 billion.

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 30.6%, 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 1.4 percentage points to 62.2% 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 third quarter, net income rose 16.6% and in the second quarter, the figure rose more than twofold.

The company topped expectations last quarter after falling short of forecasts in the third quarter with net income of 73 cents versus a mean estimate of net income of 77 cents per share.

Looking Forward: Analysts appear increasingly negative about the company’s results for the next quarter. The average estimate for the first quarter of the next fiscal year has moved down from 90 cents a share to 89 cents over the last thirty days. For the fiscal year, the average estimate has moved up from $3.18 a share to $3.19 over the last sixty days.

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

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