Qualcomm, Inc. Earnings Beat Analyst Estimates, But Stock Drops

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QUALCOMM, Inc. (NASDAQ:QCOM) just released its second quarter fiscal 2014 financial results showing that its earnings outperformed the consensus estimate of Wall Street analysts, but its sales performance fell short of expectations.

The stock price of the company declined more than 4% during the extended hours trading, around 4:23 PM in New York.

Qualcomm financial results

Based on the financial statement of QUALCOMM, Inc. (NASDAQ:QCOM) , its second quarter net earnings were $2.26 billion or $1.31 per diluted share compared with the $1.23 earnings per share estimated by analysts surveyed by FactSet.

According to the designers and manufacturer of digital communications products and services, its revenue increased by 4% to $6.37 billion year-over-year, but it is lower than the $6.49 billion forecasted by analysts.

QUALCOMM, Inc. (NASDAQ:QCOM) said its operating income increased 5% to $2.34 billion during the quarter, and its effective tax rate was 15%. Its selling, general and administrative (SG&A) expenses declined 19% to $453 million year-over year. The company ended the period with $32.1 billion cash, cash equivalents and marketable securities.

“We delivered another solid quarter, driven by demand for our leading multimode 3G/LTE chipset  solutions and record licensing revenues. “Looking forward, we are pleased to be raising our earnings per share guidance for the fiscal year. We continue to see increasing demand for our industry-leading chipsets and strong growth in calendar year 2014 of 3G/4G smartphones around the world,” said Steve Mollenkopf, chief executive officer of QUALCOMM, Inc. (NASDAQ:QCOM)

During the quarter the company shipped 188 million units of MSM chips, an increase of 9% year-over-year or 12% sequentially.

Quarterly dividend

Earlier this month, the board of directors of the company approved a quarterly dividend of $0.42 per share payable on June 25 to shareholders of record by the close of business on June 4. The current dividend payment of QUALCOMM, Inc. (NASDAQ:QCOM) is 20% higher than its previous quarterly dividend.

2014 outlook

For the full year 2014, the company expects to deliver revenues in the range of $6.2 billion to $6.8 billion and Non-GAAP diluted earnings per share between $1.15 and $1.25.

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About the Author

Marie Cabural
Marie received her Bachelors Degree in Mass Communication from New Era University. She is a former news writer and program producer for Nation Broadcasting Corporation (NBC-DZAR 1026), a nationwide AM radio station. She was also involved in events management. Marie was also a former Young Ambassador of Goodwill during the 26th Ship for Southeast Asian Youth Program (SSEAYP). She loves to read, travel and take photographs. She considers gardening a therapy.

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