QUALCOMM, Inc. (QCOM) Beats Earnings Expectations

QUALCOMM, Inc. (NASDAQ:QCOM) released its first fiscal quarter earnings report after closing bell, reporting earnings of $1.26 per share excluding items on revenue of $6.62 billion. Analysts had been expecting the company to report earnings of $1.18 per share on revenue of $6.7 billion for the quarter. The company’s shares rose as much as 2% in after-hours trading after the earnings beat was reported.

“We are pleased with the start to our fiscal year, with record results in quarterly revenues, device sales reported by licensees and MSM chip shipments,” said Dr. Paul E. Jacobs, Chairman and CEO of Qualcomm, in a statement. “Looking forward, we expect our performance to reflect the continued strong global growth of smartphones, our chipset leadership position and our competitive strengths in 3G/4G technologies and products.”

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Examining Qualcomm’s results

QUALCOMM, Inc. (NASDAQ:QCOM)’s reported revenue was up 10% year over year and 2% sequentially. Operating income was $1.49 billion, a 28% percent decline year over year and 6% decline sequentially. Net income declined 2% year over year but rose 25% sequentially to $1.88 billion.

GAAP diluted earnings per share were $1.09, which was flat year over year and up 25% sequentially. During the December quarter, QUALCOMM, Inc. (NASDAQ:QCOM) reported a $665 million gain for discontinued operations from the sale of most of its Omnitracs division. It also reported a $444 million charge which came from an impairment charge on some of its property, plant and equipment related to its QMT division. Qualcomm also reported a $173 million charge in connection with the verdict in the company’s litigation with ParkerVision.

QUALCOMM, Inc. (NASDAQ:QCOM) sold 213 million MSM chip units, a 17% year over year increase and 12% sequential increase.

Qualcomm provides guidance, returns capital

QUALCOMM, Inc. (NASDAQ:QCOM) guided for second fiscal quarter earnings per share of between $1.15 and $1.25.

The company reported that it returned $1.59 billion to shareholders, including $1 billion through the buyback of 14.2 million shares and $590 million or 35 cents per share in cash dividends.