Qualcomm Q1 Earnings In-Line, Second Quarter Outlook Weak

Qualcomm Inc. QCOM just released its first quarter fiscal 2017 financial results, posting earnings, before non-recurring items, of $1.06 per share and revenues of $6 billion. Currently, QCOM is a #3 (Hold) on the Zacks Rank, and is down 1.74% to $55.91 per share in trading shortly after its earnings report was released.

Matched earnings estimates. The company posted earnings of $1.06 cents per share, matching the Zacks Consensus Estimate of $1.06 cents per share. This number excludes 61 cents from non-recurring items.

Misses revenue estimates. The company saw revenue figures of $6 billion, just missing our consensus estimate of $6.106 billion but gaining 4% year-over-year.

The company reported that mobile station modem (MSM) chip shipments, including the Snapdragon LTE modem, totaled 217 million. Device sales were $62.9 million, lower than the $68.6 million forecasted by analysts.

Looking ahead, Qualcomm expects Q2 fiscal 2017 revenues to fall in the range of $5.5 billion and $6.3 billion, representing a decrease of 1% to an increase of 13%. Non-GAAP diluted EPS is expected to be in the range of $1.15 and $1.25, suggesting an increase of 11% to 20%.

"We are pleased with the strong start to our fiscal year and the year-over-year earnings growth across both our semiconductor and licensing businesses," said Steve Mollenkopf, CEO of Qualcomm Incorporated. "Looking ahead, the pending NXP acquisition accelerates our strategic transformation in the high growth areas of automotive, IoT, security and networking. We are very well positioned to lead as the semiconductor engine for the intelligent, connected world."

Mr. Mollenkopf also commented on Qualcomm's current legal troubles, saying the company will "vigorously defend" its business going forward.

Here's a graph that looks at Qualcomm's price, consensus, and EPS surprise:

QUALCOMM Incorporated Price, Consensus and EPS Surprise

QUALCOMM Incorporated Price, Consensus and EPS Surprise | QUALCOMM Incorporated Quote

QUALCOMM Inc. develops and delivers innovative digital wireless communications products and services based on the company's CDMA digital technology. The company's business areas include CDMA integrated circuits and system software; technology licensing; the Binary Runtime Environment for Wireless applications development platform; Eudora e-mail software; digital cinema systems; and satellite-based systems including portions of the Globalstar system and wireless fleet management systems, OmniTRACS and OmniExpress.

Zacks' Top Investment Ideas for Long-Term Profit

How would you like to see our best recommendations to help you find today's most promising long-term stocks? Starting now, you can look inside our portfolios featuring stocks under $10, income stocks, value investments and more. These picks, which have double and triple-digit profit potential, are rarely available to the public. But you can see them now. Click here >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

QUALCOMM Incorporated (QCOM): Free Stock Analysis Report

To read this article on click here.

Zacks Investment Research

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

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

In This Story


Other Topics


Latest Markets Videos


    Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. Today, that discovery is still the heart of the Zacks Rank. A wealth of resources for individual investors is available at

    Learn More