Qualcomm Inc. ( QCOM ) reported strong
financial results for the first quarter of fiscal 2013, on the back
of a significant surge in demand for the smartphones and tablets,
easily beating the Zacks Consensus Estimates. Moreover, management
has raised its outlook for fiscal 2013 primarily due to gradual
adoption of LTE networks in North America, rapid transition from 2G
to 3G in China and India, and increasing licensing revenue.
As a result, in the after market trade on NASDAQ, stock price
of Qualcomm was up $3.96 (6.23%) to $67.49. Qualcomm currently has
a Zacks Rank #2 (Buy).
Quarterly total revenue of $6,018 million was up 28.6% year over
year, surpassing the Zacks Consensus Estimate of $5,893 million.
Segment wise, Qualcomm CDMA Technologies businesses accounted for
$4,120 million of revenue in the first quarter, up 34% over the
prior-year quarter. Quarterly EBT margin was 26%. Qualcomm
Technology Licensing generated $1,757 million in revenue, up 22%
year over year. Quarterly EBT margin was 87%. Qualcomm Wireless
& Internet segment generated $146 million, down 4% year over
year and incurred $3 million of operating losses.
On a GAAP basis, quarterly net income from continuing operations
was $1,903 million or $1.09 per share compared with a net income of
$1,400 million or 81 cents per share in the year-ago quarter.
Notably, the first quarter of fiscal 2013 adjusted (excluding
special items) earnings per share came in at $1.14, way ahead of
the Zacks Consensus Estimate of $1.00.
During the first quarter of fiscal 2013, Qualcomm shipped
approximately 182 million CDMA-based MSM chipsets, up 17% year over
year. This figure was far better than the company's guidance of a
mid-point of 173 million. Average selling price of mobile handset
with an in-build Qualcomm chipset during this quarter was around
Quarterly operating income was $2,088 million compared with an
operating income of $1,551 million in the year-ago quarter. Gross
margin was 62.8% compared with 62.5% in the year-ago quarter.
Quarterly operating margin was 34.7% compared with 33.1% in the
prior-year quarter. In the reported quarter, the company returned
$428 million (25 cents per share) to its shareholders in the form
of cash dividends and repurchased 4.3 million shares of its common
stock for a total consideration of $250 million.
During the first quarter of fiscal 2013, Qualcomm generated
$1,975 million of cash from operations compared with $1,779 million
in the prior-year quarter. Free cash flow (cash flow from
operations less capital expenditures) during the reported quarter
was $1,770 million compared with $1,420 million in the year-ago
At the end of the first quarter of fiscal 2013, Qualcomm had
$28,371 million of cash and marketable securities and no
outstanding debt on its balance sheet compared with $26,837 million
of cash and marketable securities and no outstanding debt at the
end of fiscal 2012.
Second Quarter of Fiscal 2013 Financial
The second-quarter revenue will be within the range of $5.8
billion - $6.3 billion. Non-GAAP earnings per share will be within
the range of $1.10 - $1.18. GAAP earnings per share will be within
the range of 98 cents - $1.06. Qualcomm is expected to ship 163
million - 173 million MSM chipsets during the second quarter of
Full Fiscal 2013 Financial Guidance
Fiscal 2013 revenue will be within the range of $23.4 billion -
$24.4 billion. Non-GAAP earnings per share will be within the range
of $4.25 - $4.45. GAAP earnings per share will be within the range
of $3.61 - $3.81. ASP of mobile handset with an in-build Qualcomm
chipset during fiscal 2013 will be around $214 -$226.
Other Stocks to Consider
Other stocks to consider in the semiconductor market are
Intel Corp. ( INTC ), Texas
Instruments Inc. ( TXN ) and
Broadcom Corp. ( BRCM ). All the three
companies handily beat the Zacks Consensus Estimates in the most
recent quarter. While Broadcom currently has a Zacks Rank #2 (Buy),
both Intel and Texas Instruments carry a Zacks Rank #3 (Hold) on
the stock.BROADCOM CORP-A (BRCM): Free Stock Analysis
ReportINTEL CORP (INTC): Free Stock Analysis ReportQUALCOMM INC (QCOM): Free Stock Analysis ReportTEXAS INSTRS (TXN): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment