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Qualcomm Disconnects in Q1: Fool by Numbers

On Jan. 25, Qualcomm (Nasdaq: QCOM  ) released Q1 2006 earnings for the period ending Dec. 25, 2005.

  • At first glance, it seems analysts had a crystal ball problem this quarter. But their outlook for per-share earnings excluded the effect of, among other things, stock-based compensation. Without that and other charges, Qualcomm booked $0.39 a stub.
  • On the whole, Qualcomm's growth was impressive, especially its 83% increase in free cash flow. (Find out why that's important.)
  • But investors still weren't enthused; the shares traded roughly flat. That could be because of the outlook. Qualcomm says its Q2 earnings could be as much as $0.03 lower than last year. Ouch.

(Figures in millions, except per-share data)

Income Statement Highlights

Avg. Est.

Q1 2006

Q1 2005

% Change

Sales

$1,750

$1,741

$1,390

+25.3

Net Profit

--

$620

$513

+20.9

EPS

$0.38

$0.36

$0.30

+20.0

Get back to basics with a look at the income statement.

Margin Checkup

Q1 2006

Q1 2005

% Change

Gross Margin

70.30%

69.06%

+1.24

Op. Margin

37.05%

42.01%

-4.97

Net Margin

35.61%

36.91%

-1.29

Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets

Q1 2006

Q1 2005

% Change

Cash + ST Invest.

$6,984

$6,124

+14.0

Inventory

$195

$156

+25.0

Accounts Rec.

$728

$659

+10.5



Liabilities

Q1 2006

Q1 2005

% Change

Long-Term Debt

--

--

N/A

Accounts Pay.

$431

$262

+64.5%



Cash Flow Highlights

Q1 2006

Q1 2005

% Change

Cash From Ops

$596

$397

+50.1

Capital Expend.

$213

$188

+13.3

Free Cash Flow

$383

$209

+83.3

Find out why Fools always follow the money.

Related Companies:

  • Broadcom (Nasdaq: BRCM  )
  • Motorola (NYSE: MOT  )
  • Nokia (NYSE: NOK  )
  • Sprint Nextel (NYSE: S  )
  • Texas Instruments (NYSE: TXN  )
  • Verizon (NYSE: VZ  )

Related Foolishness:

Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so checkFool.comfor more of our in-depth discussion of what the numbers mean.

Fool contributorTim Beyersowns shares of Nokia. You can find out what else is in his portfolio by checking Tim's Foolprofile. The Motley Fool has an ironcladdisclosure policy.


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Tim Beyers
TMFMileHigh

Tim Beyers first began writing for the Fool in 2003. Today, he's an analyst for Motley Fool Rule Breakers and Motley Fool Supernova. At Fool.com, he covers disruptive ideas in technology and entertainment, though you'll most often find him writing and talking about the business of comics. Find him online at timbeyers.me or send email to tbeyers@fool.com. For more insights, follow Tim on Google+ and Twitter.

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