The 10-second takeaway
For the quarter ended Dec. 25 (Q1), Qualcomm beat expectations on revenues and earnings per share.
Compared to the prior-year quarter, revenue expanded significantly and GAAP earnings per share expanded.
Margins shrank across the board.
Qualcomm reported revenue of $4.68 billion. The 36 analysts polled by S&P Capital IQ expected net sales of $4.58 billion. Sales were 40% higher than the prior-year quarter's $3.35 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $0.97. The 32 earnings estimates compiled by S&P Capital IQ predicted $0.90 per share on the same basis. GAAP EPS of $0.81 for Q1 were 14% higher than the prior-year quarter's $0.71 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 62.5%, 630 basis points worse than the prior-year quarter. Operating margin was 33.1%, 410 basis points worse than the prior-year quarter. Net margin was 29.9%, 500 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $4.80 billion. On the bottom line, the average EPS estimate is $0.95.
Next year's average estimate for revenue is $19.23 billion. The average EPS estimate is $3.69.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 2,230 members out of 2,363 rating the stock outperform, and 133 members rating it underperform. Among 574 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 552 give Qualcomm a green thumbs-up, and 22 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Qualcomm is outperform, with an average price target of $65.58.
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