QUALCOMM Q2 Profit Beats View, but Q3 Forecast Falls Short (QCOM)

Comment

Shutterstock photo

Mobile phone chip maker QUALCOMM, Inc. ( QCOM ) said late Wednesday that it swung to a big second quarter profit, but its third quarter revenue forecast fell short of expectations, sending its shares lower.

The San Diego-based company reported fiscal second quarter net income of $774 million, or 46 cents per share, compared with a net loss of $289 million, or 18 cents per share, in the year-ago period, when results were hurt by a big legal settlement. Excluding one-time items, adjusted profit was 59 cents per share.

Revenue rose 8% from last year, to $2.66 billion.

On average, Wall Street analysts expected a smaller profit of about 56 cents per share, on lower revenue of $2.63 billion.

Looking ahead, the company said it expects revenue of $2.5 billion to $2.7 billion for the third quarter, compared with $2.74 billion last year. Analysts currently expect $2.66 billion in revenue.

For the full year, the company said it expects revenue to range from $10.40 billion to $11 billion, while analysts predict$10.77 billion.

Qualcomm shares fell $2.95, or -7%, in premarket trading Thursday.

The Bottom Line
We had removed shares of QCOM from our "recommended" list back on Sept.25, when the stock traded at $46.54. The company has a dividend yield of 1.78%, based on last night's closing stock price of $42.63. The company has technical support in the $36-$38 price area. If the shares can continue to rebound, we see near-term overhead resistance around the $46 price level. We would remain on the sidelines for now.

QUALCOMM, Inc. ( QCOM ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Created by Dividend.com



This article appears in: Investing , Stocks


More from Dividend.com







Dividend.com
Contributor:

Dividend.com

Dividends
Follow on:

Find a Credit Card

Select a credit card product by:
Select an offer:
Search
Data Provided by BankRate.com