Qualcomm Forecasts Mixed Q2 After December Quarter Tops Guidance

Qualcomm reported better-than-expected earnings for its fiscal first quarter to December, down only 8 percent year-on-year to USD 0.80 per share, compared to guidance for a drop of 30 percent or more. Revenues increased 5 percent to USD 5.1 billion, near the high end of its outlook. The company said it was starting to benefit from the ramp up of the 5G market.

Revenue growth was led by its licensing division Qualcomm Technologies, which grew sales 38 percent to USD 1.4 billion. Pretax profit at the division was up 72 percent to over USD 1 billion, while the manufacturing division QCT posted a 20 percent fall in profit, to USD 479 million.

For fiscal Q2, the company forecast revenues of USD 4.9-5.7 billion, compared to USD 5.0 billion a year earlier, and EPS of USD 0.50-0.65, versus USD 0.55 a year ago. MSM shipments are expected to fall to 125-145 million from 155 million in the past quarter.―Telecompaper