On Jan. 23, wireless technology company Qualcomm
- The newfound growth comes from mobile networks and handset makers worldwide getting used to the idea of high-speed 3G connectivity based on Qualcomm's WCDMA technology. The 3G line of products and services is the company's bread and butter these days.
- The 11.5% increase in operating cash flow, plus massively lower capital investments, equals lots of beautiful free cash flowing to and fro.
- This is a mediocre three-star stock in Motley Fool CAPS right now. Do these results merit a higher rating -- or perhaps a lower one? Share your opinion right now. It's fun, it's free, and we're all helping one another become better investors.
(Figures in millions, except per-share data.)
Income Statement Highlights
Q1 2008 |
Q1 2007 |
Change |
|
---|---|---|---|
Sales |
$2,440 |
$2,019 |
20.9% |
Net Profit |
$767 |
$648 |
18.4% |
EPS |
$0.46 |
$0.38 |
21.1% |
Diluted Shares |
1,664 |
1,685 |
(1.2%) |
Get back to basics with the income statement.
Margin Checkup
Q1 2008 |
Q1 2007 |
Change* |
|
---|---|---|---|
Gross Margin |
67.9% |
68.6% |
(0.7) |
Operating Margin |
31.0% |
28.5% |
2.5 |
Net Margin |
31.4% |
32.1% |
(0.7) |
Margins are the earnings engine.
Balance Sheet Highlights
Assets |
Q1 2008 |
Q1 2007 |
Change |
---|---|---|---|
Cash + ST Invest. |
$7,068 |
$5,947 |
18.8% |
Accounts Rec. |
$703 |
$693 |
1.4% |
Inventory |
$522 |
$330 |
58.2% |
Liabilities |
Q1 2008 |
Q1 2007 |
Change |
---|---|---|---|
Accounts Payable |
$536 |
$471 |
13.8% |
Long-Term Debt |
$0 |
$0 |
N/A |
The balance sheet reflects the company's health.
Cash Flow Highlights
Q1 2008 |
Q1 2007 |
Change |
|
---|---|---|---|
Cash From Ops. |
$880 |
$789 |
11.5% |
Capital Expenditures |
$127 |
$322 |
(60.6%) |
Free Cash Flow |
$753 |
$467 |
61.2% |
$748 |
$417 |
79.4% |
Free cash flow is a Fool's best friend.
Competitive Context
Market Cap (billions) |
Trailing P/E Ratio |
CAPS Rating |
|
---|---|---|---|
Nokia |
$124.3 |
13.3 |
|
Qualcomm |
$59.9 |
18.8 |
|
Texas
Instruments |
$42.4 |
17.3 |
|
Broadcom |
$11.4 |
73.3 |
|
Alcatel-Lucent |
$13.4 |
N/A |
Keep your partners close and the competition in your vest pocket.
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