Qualcomm’s second-quarter results beat Wall Street analyst expectations, pushing its shares to rise nearly 1% after the close.
Main achievement:
In the quarter ended March 25, Qualcomm’s net profit was US$ 400 million, which was 52% lower than the US$ 700 million of the same period last year, compared to a net loss of US$ 6 billion in the previous quarter. Diluted share income was US$0.24, 52% lower than US$0.50 in the same period of last year, compared with a diluted loss per share of US$4.03 in the previous quarter. Qualcomm’s operating profit in the second quarter was US$400 million, compared to the same period last year The US$700 million fell by 40%, and the operating profit of the previous quarter was zero.
Excluding special one-time items (not in accordance with US GAAP), Qualcomm’s net profit for the second fiscal quarter was US$1.2 billion, down 40% from US$2 billion in the same period of last year and down from US$1.5 billion in the previous quarter. 19%; Diluted earnings per share was US$0.80, down 40% from US$1.34 in the same period of last year, and down 18% from US$0.98 in the previous quarter, but this performance still exceeded analyst expectations. According to financial information provider FactSet The data shows that analysts had expected Qualcomm’s second-quarter earnings per share of $0.70.
Qualcomm’s revenue for the second fiscal quarter was US$5.3 billion, up 5% from US$5 billion in the same period of last year, and down 13% from US$6.1 billion in the previous quarter. Not in line with US GAAP, Qualcomm’s second-quarter revenue It was 5.2 billion U.S. dollars, down 13% from the 6 billion U.S. dollars in the same period of last year and 13% from the 6 billion U.S. dollars in the previous quarter. However, this performance also slightly exceeded analysts' expectations. According to data provided by FactSet, analysts had previously The average expected Qualcomm’s second-quarter revenue was 5.19 billion US dollars.
Department performance:
Qualcomm’s revenue from equipment and services in the second quarter was US$3.936 billion, which was higher than US$3.689 billion in the same period of last year; revenue from authorized revenue was US$1.325 billion, down from US$1.327 billion in the same period of last year.
The high-tech CDMA Technology Group’s second-quarter revenue was US$3.897 billion, an increase of 6% from US$3.676 billion in the same period of last year, and a 16% decrease from US$4.651 billion in the previous quarter; Profit before tax was US$608 million, compared to last year. The US$475 million in the same period grew 28%, which was 36% lower than the US$955 million in the previous quarter. Qualcomm authorized the Group’s second-quarter revenue of US$1.26 billion, which was 44% lower than 22.49 in the same period of last year. The US$1,299 million in the quarter fell by 3%; pre-tax profit was US$850 million, which was 57% lower than the US$1.959 billion in the same period of last year and 4% lower than the US$8.87 billion in the previous quarter.
Costs and expenses:
Qualcomm’s total operating costs and expenses in the second quarter were US$4.82 billion, which was higher than the US$4.287 billion in the same period of last year. Among them, the revenue cost was US$2.239 billion, which was higher than US$2.208 billion in the same period of last year; R&D expenditure was US$1.402 billion. Higher than last year's 1.386 billion U.S. dollars; sales, general affairs and administrative expenses were 869 million U.S. dollars, higher than the 615 million U.S. dollars of the same period of last year; other expenses were 310 million U.S. dollars, which was higher than the 78 million U.S. dollars of the same period of last year.
Other financial information:
Qualcomm’s operating cash flow for the second quarter was US$500 million, which was 37% lower than US$800 million in the same period of last year and 71% lower than the US$1.8 billion in the previous quarter. Qualcomm’s cash held as of the end of the second quarter of fiscal year 2018 The total value of cash equivalents and marketable securities was 39.6 billion U.S. dollars, compared with 28.9 billion U.S. dollars at the end of the second fiscal quarter of fiscal year 2017 and 39.9 billion U.S. dollars at the end of the first fiscal quarter of fiscal year 2018.
Qualcomm’s effective income tax rate for the second quarter was 1%, and the effective income tax rate that was not in accordance with U.S. GAAP was 4%.
Qualcomm returned a total of US$1 billion in cash to shareholders in the second quarter of fiscal year 2018, including US$845 million, or approximately US$0.57 per share, in the form of cash dividends; and repurchased 3.1 million common shares. This form returned 200 million U.S. dollars in cash to shareholders. Qualcomm announced on April 17, 2018 that the company will distribute cash dividends of US$0.62 per share to shareholders, which is 9% higher than the previous quarterly dividend. Dividends will be paid on June 20, 2018 to registered shareholders as of the close of business on May 30, 2018.
Performance Outlook:
Qualcomm expects revenue in the third quarter of fiscal year 2018 to be US$4.8 billion to US$5.6 billion, down 11% from the US$5.4 billion in the same period last year to a growth of 4%, where the value is less than expected; the diluted earnings per share is US$0.35 to US$0.50 , Compared with US$0.58 in the same period of last year, it decreased by 14% to 40%; Diluted earnings per share that did not comply with US GAAP was US$0.65 to US$0.75, a decrease of 10% to 22% from US$0.83 in the same period of last year. Expected. FactSet survey shows that analysts expect Qualcomm’s third-quarter revenue to be 5.28 billion US dollars and earnings per share of 0.70 US dollars.
Change in stock price:
On the same day, Qualcomm’s stock price fell by US$0.19 in regular trading on the Nasdaq, and closed at US$49.75, a fall of 0.19%. After-hours trading ended as of 17:32 Eastern Time (5:32 GMT 26). China Qualcomm’s stock price rose by US$0.45 to US$50.20, or by 0.90. For the past 52 weeks, Qualcomm’s highest price was US$69.28 and its lowest price was US$48.87.