The 10-second takeaway
For the quarter ended Sep. 30 (Q4), QUALCOMM beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share expanded significantly.
Gross margins shrank, operating margins dropped, net margins expanded.
QUALCOMM booked revenue of $4.87 billion. The 37 analysts polled by S&P Capital IQ predicted a top line of $4.66 billion on the same basis. GAAP reported sales were 18% higher than the prior-year quarter's $4.12 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.89. The 36 earnings estimates compiled by S&P Capital IQ averaged $0.82 per share. GAAP EPS of $0.73 for Q4 were 20% higher than the prior-year quarter's $0.61 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 62.2%, 200 basis points worse than the prior-year quarter. Operating margin was 25.4%, 580 basis points worse than the prior-year quarter. Net margin was 26.1%, 50 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $5.34 billion. On the bottom line, the average EPS estimate is $1.01.
Next year's average estimate for revenue is $21.75 billion. The average EPS estimate is $4.13.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 2,394 members out of 2,534 rating the stock outperform, and 140 members rating it underperform. Among 520 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 494 give QUALCOMM a green thumbs-up, and 26 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 $70.75.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool owns shares of Qualcomm. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.