Qualcomm Earnings Top Street, Outlook Strong

(RTTNews) - Qualcomm Inc. (QCOM) Wednesday reported a first quarter that trumped Wall Street estimates. Moving ahead, the company also detailed a strong revenue outlook for the second quarter.

Qualcomm reported first-quarter profit of $1.07 billion or $0.87 per share, compared with last year's loss of $5.98 billion or $4.05 per share.

Adjusted earnings for the quarter rose to $1.20 per share from $0.96 per share last year. On average, 20 analysts polled by Thomson Reuters estimated earnings of $1.09 per share for the quarter. Analysts' estimates typically exclude one-time items.

Revenues for the quarter dropped to 20% to $4.84 billion from $6.04 billion last year. Analysts had a consensus revenue estimate of $4.90 billion for the quarter.

"Our fiscal first quarter results reflected continued strength in our semiconductor business, driven by strong product leadership and operating expense management," said CEO Steve Mollenkopf. "We continue to execute on our strategic objectives, including driving the global transition to 5G, protecting the established value of our technology and inventions and expanding into new industries and product categories."

Beginning in the third quarter of 2017, results have been negatively impacted by the company's dispute with Apple and its contract manufacturers, Qualcomm said in a statement.

Looking forward to the second quarter, Qualcomm expects revenues of $4.4 billion to $5.2 billion and adjusted earnings of $0.65 to $0.75 per share. Analysts currently expect earnings of $0.69 per share on revenues of $4.81 billion.

QCOM closed Wednesday's trading at $50.17, up $0.77 or 1.56%, on the Nasdaq. The stock further gained $0.94 or 1.87% in the after-hours trade.