The 10-second takeaway
For the quarter ended Dec. 30 (Q1), QUALCOMM beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share grew significantly.
Margins expanded across the board.
QUALCOMM booked revenue of $6.02 billion. The 36 analysts polled by S&P Capital IQ hoped for a top line of $5.90 billion on the same basis. GAAP reported sales were 29% higher than the prior-year quarter's $4.68 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 $1.26. The 34 earnings estimates compiled by S&P Capital IQ averaged $1.12 per share. GAAP EPS of $1.09 for Q1 were 35% higher than the prior-year quarter's $0.81 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 62.8%, 30 basis points better than the prior-year quarter. Operating margin was 34.7%, 160 basis points better than the prior-year quarter. Net margin was 31.7%, 180 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $5.89 billion. On the bottom line, the average EPS estimate is $1.10.
Next year's average estimate for revenue is $23.56 billion. The average EPS estimate is $4.32.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 2,483 members out of 2,627 rating the stock outperform, and 144 members rating it underperform. Among 553 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 534 give QUALCOMM a green thumbs-up, and 19 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 $73.01.
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