Qualcomm Results Top Estimates; Cuts FY Guidance

(RTTNews) - Mobile chip maker Qualcomm Inc (QCOM) on Wednesday reported first-quarter net earnings of $1.1 billion or $0.63 per share compared with $2 billion or $1.14 per share last year.

Results for the quarter included a $975 million charge related to a settlement with Chinese regulators over a probe of Qualcomm under anti-monopoly Law.

Excluding items, adjusted earnings for the quarter were $1.40 per share compared with $1.31 per share a year ago.

On average, 29 analysts polled by Thomson Reuters estimated earnings of $1.33 per share for the quarter. Analysts' estimates typically exclude special items.

Qualcomm's revenues for the quarter were up 8 percent at $6.9 billion compared with $6.4 billion in the prior year.

Twenty-nine analysts had a consensus revenue estimate of $6.83 billion for the quarter.

"We are pleased with our second quarter results, with record licensing revenues and earnings driven by all-time high 3G/4G device shipments reported by our licenseesm," said CEO Steve Mollenkopf. Mollenkopf said the company sees robust global demand for 3G/4G devices, including in China.

For the third quarter, the company expects adjusted earnings of $0.85 to $1.00 per share on revenues of $5.4 billion to $6.2 billion. Analysts expect earnings of $1.14 per share on revenues of $6.50 billion.

For the full year 2015, the company now expects adjusted earnings of $4.60 to $5.00 per share on revenues of $25 billion to $27 billion. Earlier it expected earnings of $4.85 to $5.05 per share on revenues of $26.3 billion to $28 billion.

Analysts expect earnings of $0. per share on revenues of $ million for the year.

"While we remain confident in the significant growth opportunities ahead, we are reducing our QCT outlook for fiscal 2015, primarily due to the increased impact of customer share shifts within the premium tier and a decline in our share at a large customer," Mollenkopf said.

Qualcomm shares were losing $1.55 or 2.25% at $67.39 in after-hours trade on the Nasdaq.