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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