Image source: Qualcomm.
Shares of Qualcomm (QCOM -0.20%) fell 3.9% in after-hours trading, following the release of mixed results for the second quarter of fiscal year 2014. Guidance for the coming quarter also raised more questions than it answered.
Qualcomm's sales increased 4% year over year to $6.4 billion, driving a 12% increase in non-GAAP earnings per share. Landing at $1.31 per share, the earnings result exceeded Wall Street's $1.22 target by a fair margin, while revenues fell just short of the $6.5 billion consensus.
Semiconductor sales increased by 8% year over year while licensing revenues grew by 1%.
In the third quarter, Qualcomm expects to see adjusted earnings of approximately $1.20 per share on $6.5 billion in sales. Both of these numbers sit below the current analyst view. Nevertheless, management held full-year revenue guidance steady while bumping up the earnings range by $0.05 per share. The $5.15 midpoint of the new 2014 earnings guidance is just a hair richer than current analyst projections.
In a prepared statement, CEO Steve Mollenkopf celebrated "another solid quarter" with strong demand for combined 3G/LTE wireless chipsets. "We continue to see increasing demand for our industry-leading chipsets and strong growth in calendar year 2014 of 3G/4G smartphones around the world," Mollenkopf added.
